Sunday, March 22, 2009

A Trillion Here,

A Trillion there, and pretty soon, we'll be talking about real money.

Or not, as this comment makes clear:

Administration officials believe this new power will save taxpayers money and avoid the type of controversy that erupted last week when insurance giant American International Group paid employees of its troubled financial products unit $165 million in bonuses even though the company had received more than $170 billion in support from the federal government.

Under the new powers being sought by the administration, the treasury secretary could only seize a firm with the agreement of the president and the Federal Reserve.

Once in the equivalent of a conservatorship, the treasury secretary would have the power to limit payments to creditors and to break contracts governing executive compensation, a power that was lacking in the AIG case.

The plan on toxic assets will use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.

The initiative will seek to entice private investors, including big hedge funds, to participate by offering billions of dollars in low-interest loans to finance the purchases. The government will share the risks if the assets fall further in price.”

Given the Adminstration's AIG mess – where either Obama / Geithner or Chris Dodd, depending on who you belive at the moment, inserted legislation guaranteeing the AIG bonus payments, only to be shocked! Shocked! That the bonus payments were made, what kind of moron would sign up to do business with this government?

This is not a crew that exudes integrity – from the Tony Rezko / Bill Ayers / Jerimiah Wright contremps to the tax cheat Geither*.

And that's not even mentioning the plagiarist Biden (D-MBNA).



*Though the worst thing about Little Timmy Geithner isn't that he's a tax cheat. That's a standard operating procedure with the Democratic party these days. It's that he's incompetent.

That certainly says something about Mr. “Superior Judgement”.