Monday, November 24, 2008

Bailout Bonanza

With the news that Citigroup is going to get $300 billion in taxpayer dollars, and that commitments of taxpayer dollars are nearly $8 TRILLION, it's not surprising to see Representative Scott Garrett in the news today. From Bloomberg:
“Whether it’s lending or spending, it’s tax dollars that are going out the window and we end up holding collateral we don’t know anything about,” said Congressman Scott Garrett, a New Jersey Republican who serves on the House Financial Services Committee. “The time has come that we consider what sort of limitations we should be placing on the Fed so that authority returns to elected officials as opposed to appointed ones.”

Garrett's dead on with this one. And when pressed for more transparency, Fed Chairman Ben Bernancke had this to say:

“Some have asked us to reveal the names of the banks that are borrowing, how much they are borrowing, what collateral they are posting,” Bernanke said Nov. 18 to the House Financial Services Committee. “We think that’s counterproductive.”

I'm sorry, but this isn't Ben's personal piggy bank we're talking about. It's nearly $8 TRILLION in taxpayer money. We have a right to know that the Fed and Treasury are being more responsible with it than the people they seem hellbent to lend it to were with their own institution's money.

The commitments made by the Fed and Treasury (appointed), when added to our existing deficit (Congress), have pushed the amount each man, woman and child owe to over $61,000.

For comparative purposes, the median income for a family of four in the United States was $67,000 in 2007, but their Washington induced debt is roughly $244,000.

We're responsible for it, but without Congressional oversight, we have no way of making sure we get our money back or that we're not throwing money down a hole. In order for the Big Three to get their $25 billion, they have to present a business plan. That's .32% of what the Fed and Treasury are kicking out without having similar conditions.

Something has gone very, very wrong. And we the taxpayer are in line for getting royally screwed.

1 comment:

Mberenis said...

I think WE need a bailout.

Check out current bailouts for us.
Bailout Types for 2009