Six weeks ago, Treasury Secretary Henry Paulson claimed he knew how to avert a meltdown in the financial markets. Within days of presenting his rescue package, Congress approved a $700 billion bailout of Wall Street.
Paulson has since thumbed his nose at Congress and pursued a secret plan to end the financial crisis.
Now, Paulson says, never mind. His plan to buy up toxic assets has not calmed Wall Street.
So, he’s pulling a "switcheroo" and going to Plan B. That is, as soon as he comes up with Plan B.
Meanwhile, business lobbyists are trying to hitch a ride on the $700 billion bailout plan gravy train.
As distressed homeowners and middle-class taxpayers juggle their credit card bills, the Treasury Department reportedly will bail out credit card companies, including American Express. The bailout would come courtesy of their cardholders.
And the money is being handed out with no oversight. CBS News reports:
The original idea: Spend $700 billion in tax dollars to buy troubled mortgage-related assets from struggling banks.
But the actual bailout calls for nothing of the sort. Instead, your tax dollars are buying massive shares in some of the nation's biggest and most successful banks - with virtually no strings attached. And that's all allowed under Congress' plan.
On Nov. 4, Americans voted for Democratic hegemony in DC. They voted to end business as usual.
President-elect Barack Obama does not take office until Jan. 20. But Congress is expected to convene a lame-duck session next week.
If you've had a bellyful of free money for fat cats, then contact your representative and senators and tell them: Enough is enough! Stop wasting taxpayers' money.
It's past time for the Democratic-controlled Congress to help the ordinary Americans who gave them a governing majority.
