They’ve picked through the carcass of an old and dry bird leaving it boneless and bare. Instead of a turkey, the banking industry decided they’d dine on a bald eagle. This seems to be the point of view that the financial industry has taken since they are using taxpayer money to prop back up the plummeting economy. The subprime mortgage crisis coupled with the lack of faith in commercial paper markets further fed the recession we are facing. The concept of a free market has been absolutely leveled with the government’s philosophy on sustaining failing enterprises.What bothers me most however is the lack of oversight that Treasury Secretary Henry Paulson failed in carrying out. After all, his job is to act as the watchdog and notify the president of what he notices. Paulson’s connections also raise alarms. He is friends with many of the bailout recipients since his previous job was CEO of Goldman Sachs.
He implored the president and congress on the passage of the United States Emergency Economic Stabilization Fund, injecting $700 billion dollars into the worsening banks. The passage of this act essentially gave him the authority to write blank checks to his banking buddies at the tax payers’ expense. The $700 billion estimate seemed a bit on the short side with the number continuing to increase. The financial bailout is now considered the most expensive U.S. expenditure ever totaling $7.5 trillion. That’s half of last year’s gross domestic product. This graph shows how tremendous the cost is to us.
I understand that hindsight is 20/20 and that it’s a naïve to believe that one man is responsible for this entire mess. But I’m feeling it right now in the depreciation of my retirement funds and the job-loss experienced by my neighbors. It’s hurting all of us. Paulson unwittingly became my personal scapegoat with his declaration in July of 2007 that the subprime mortgage crisis didn't pose any threat to the economy. In my psyche, I need a single fallible foil on whom to direct my resentment. Fueled by the unsettling image of a scavenger feasting on my 401k, Paulson turned into my ideal vulture.
1 comment:
I completely agree with your post. Our economy is at an all time low, people are job-less and trying everything they can to provide security for their families. Using taxpayer money to support the "plummeting economy" is just plain stupid.
You are also completely correct is blaming Treasury Secretary Henry Paulson. As the treasury secretary, he above all people should know when the economy is in trouble and he should know how to help if it is. Either he has no idea what he's doing, or he is ripping of the American people. Is it just coincidence that the major companies that need money just happen to be run by his friends? That remains to be seen, but it is not looking very good on their part. The $700 billion bailout package seemed immense to me before but after seeing the connecting website and the estimated $7.5 trillion I was shocked. Way to many middle and lower class Americans are struggling to get by and asking them to help bail out CEO's and rich corporations is just appalling. If the government continues down this path I can't see how the economy will get any better. I can only hope that we will be able to find the right course before that happens.
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