Sanity Injection

Injecting a dose of sanity into your day’s news and current events.

Bait and switch on the financial bailout we’re paying for!

Posted by sanityinjection on November 12, 2008

Remember the bipartisan legislation passed several weeks ago to spend $700 billion on a financial bailout package? The centerpiece of the package was a proposal by the administration to buy up bad mortgage-backed assets in order to heal the credit marekt. That was the basic plan that everybody voted for.

Well, today Treasury Secretary Paulson has announced that they’re not going to spend the $700 billion on mortgage-backed assets. Instead of doing what the legislation tells them to do, they’re going to do what *they* want to do with the money, without specifying what that is.

Well, I can tell you what they’ll do with the money. They’re going to hand some of it to the domestic automakers, who are in danger of going bankrupt if they don’t get an infusion of cash. And some of it will be used to bolster the finanical markets in other ways that the Treasury Department thinks best.

Seems to me, that’s not what Congress voted for. But it’s the Democrats in Congress that are pushing to divert money to the automakers. So both parties are to blame on this one.

The moral of this story is, don’t believe the federal government when they tell you what they need money for. Once they get it they will use it for whatever they want. That is why raising taxes to give the government more money to play with is a stupendously bad idea, no matter what wonderful things they promise you they are going to do with it.

I’ve learned my lesson…have you?

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6 Responses to “Bait and switch on the financial bailout we’re paying for!”

  1. Preaching to the choir. “No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!” – Ronald Reagan

  2. sanityinjection said

    Update: Looks like the Republican leadership in Congress is stepping up to the plate, at least as far as demanding that the Administration tell us what they are doing with our money:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=axpH4Qil0NT8&refer=worldwide

  3. Sister Benedict said

    Remember the last time the Republicans stepped up to the plate on this issue? They tripped and fell face-down on the plate. I hope they advocate for smaller government and less meddling in the markets and for much more fiscal responsibility rather than voting just like the Democrats.

    P.J. O’Rourke said in his book “Parliament of Whores” that giving money to government is like giving whiskey and car keys to teenaged boys. Let’s hope that P.J.’s quote is wrong as regards this bailout situation. Doubt it.

    By the way, that book is an excellent civics lesson that is easily-digestible because it’s hilarious. You can get it used for $3 plus shipping, which is cheaper than that double mocha half-caff thing you were planning to get at lunchtime. Buy the book: http://www.amazon.com/Parliament-Whores-Humorist-Attempts-Government/dp/0802139701/ref=pd_bbs_sr_2?ie=UTF8&s=books&qid=1226588311&sr=8-2

  4. sanityinjection said

    Over at Time magazine, Bill Saporito says the taxpayers are screwed whether we bail out GM or not:

    http://www.time.com/time/business/article/0,8599,1858702,00.html

  5. sanityinjection said

    Looks like Congressional Republicans are holding firm against the auto bailout:

    “They should take every step possible, including cutting executive salaries and bonuses, and exhaust all alternatives before coming to the taxpayers for tens of billions of dollars in help,” Charles Grassley of Iowa said.

    “Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers’ competitiveness around the world is neither fair to taxpayers nor sound fiscal policy,” House Republican leader John Boehner of Ohio said in a statement.

    Thank goodness someone has injected a little sanity into this issue! 🙂

    http://www.reuters.com/article/marketsNews/idINN1339368420081114?rpc=44

  6. sanityinjection said

    And now cometh David Brooks:

    http://www.nytimes.com/2008/11/14/opinion/14brooks.html?_r=2&ref=opinion&oref=slogin&oref=slogin

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