Having read the draft bill posted around here, there is only one conclusion to draw:
They can't be serious.
As if anyone in their right mind would give a $700 billion blank check to what may be the most highly-politicized, most incompetent, most-crony-infected, corrupt administration in American history.
As we discuss realistic legislation, two principles should guide the effort:
- It should be temporary
- It should create significant transparency into exactly what assets are being purchased.
(Please join below for further argument)
It should be temporary because it is hard to see how we could create a long-term process and/or institution with sufficient transparency that would not be completely infested by the corruption and hidden agendas of the Bush Administration.
Name a single thing the Bush Administration has done that is even plausibly in the interest of the majority of Americans. Just one, as a conversation starter? Anyone?
At all costs, we should not agree now to some underbaked measure that hamstrings the next administration. This bill should be a bridge to February.
It should be transparent because otherwise who knows what bad assets the Administration might take over from crony buddies in sweetheart deals. Corrupt backroom deals on behalf of cronies, and at the expense of taxpayers, are the hallmark of Bush's career, from the Ballpark at Arlington to Halliburton.
Transparency and accountability can be ensured through several possible mechanisms. One idea:
A. Have teams working for the Fed, under Bernanke (someone who will plausibly be around for a while), identify the assets to purchase, not Paulson and the Administration.
B. Create a process requiring Congressional approval of buyouts in digestible chunks (say, a maximum bundle of $25 billion).
Two other things Congressional Dems might consider:
- Create a high profile commission to investigate what went wrong that can hold hearings and report out partial findings and proposed fixes, week by week, between now and February, with a major recommendation on longer-term fixes 18 weeks from now.
- Start writing the bill that will ratchet up criminal penalties (especially major financial penalties) on the individuals who took part in wrong-doing at all levels, from bogus mortgage-initiators up to corporate chieftains.
This might create some leverage on the Administration to do the right thing on the bill that matters -- ratcheting up criminal penalties will make boatloads of Bush cronies squeal like stuck pigs.
If Democrats placidly roll over on this issue next week, it could well blow up our chances in November, not to mention the long-term implications. (Fundamentally, if Dems roll over on this, why should people trust them on any issue?)