I watched the farce that was the Senate Banking Committee Hearing this morning and I've come to the conclusion that the only crisis on Wall Street is that a very few, very rich, shareholders might lose some money. And we just can't have that!
Here's how we know that there is no crisis.
The Three Amigos: Treasury Secretary Henry Paulson, SEC Chairman Christopher Cox, Fed Chairman Ben Bernanke
- They've been sitting on this plan for months.
Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.
- Why $700 billion? This question was asked repeatedly in the hearing several different ways. No answer. Why not $500 or $50? And why do you need $700 billion all right now?
- If it's a credit crisis, from whom in hell are you going to borrow $700 billion, right now?
- The Three Amigos are adamant that a "clean bill" is passed and passed immediately, going so far as to suggest that Congress talk about oversight and accountability issues after it's passed. (Even though there is only 2 weeks left in session this year.)
- They've balked at oversight and accountability. Going so far as to propose this language in the bill.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
- They've balked at measures to help out homeowners and other measures to help out on Main Street.
- They've balked at taking punitive measures against CEO pay packages.
- They've balked at requiring equity compensation (warrants) for any assistance provided by the bailout. Their excuse? They fear it would:
... limit participation in the program. Only failing banks would be willing to give the government stock in exchange for buying up their bad assets.
SO FUCKING WHAT?! If they don't need a bail out why the fuck should we give them our borrowed taxpayer dollars?!
- They insist on having the authority to purchase assets from institutions that are not in danger of failing, even the authority to help out foreign institutions. Despite repeated requests to explain why they would bail out banks that are fine they refuse to answer with any substance.
- They admit they will pay above-market rates for these assets.
- Secretary Paulson assumed his post in 2006. His previous job was CEO of Goldman Sachs, the largest and most prestigious investment bank in the country. Today he claimed at the hearing that when he took office he was "Shocked!" at the lack of regulations.
Shocked? You were the CEO of Goldman Sachs and you aren't aware of the regulations of these major securities that you bought and sold daily? So "shocked!", that you did NOTHING in nearly 2 years as Treasury Secretary to create this missing regulation?
Updated x1
- Fellow Kossack reports Warren Buffet willing to lay down 5$ billion bet on Goldman Sachs.
So the Three Amigos give a presentation to Congressional leaders Friday evening scaring the hell out of them, the mainstream media, and the public. They effectively say: "Give us $700 billion on Monday to spend any way we see fit or the economy gets it". They want no oversight, no accountability, no explanation as to the size or purpose or a spending plan.
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It's not a Crisis. It's a Stickup.
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This is the Cowboy President that thinks he's living in the Wild West,
... and we need a new Sheriff.
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... or do we just need a Bad Motherfucker?
Take Action.Stop Paulson's Plunder.
Take Action.Stop the Bush Bailout.
Take Action.No blank check for Wall St.