September 24, 2008
by: jovial_cynic

image: Henry Paulson (cc) kelnishi

If there was any question about the US Treasury department's ability to make reasoned decisions to help get this country out of the economic situation we're currently in, let this clear things up:

The more Congress examines the Bush administration's bailout plan, the hazier its outcome gets. At a Senate Banking Committee hearing Tuesday, lawmakers on both sides of the aisle complained of being rushed to pass legislation or else risk financial meltdown.


In fact, some of the most basic details [of the bail-out plan], including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.

"It's not based on any particular data point," a Treasury spokeswoman told Tuesday. "We just wanted to choose a really large number." (emphasis mine)

I recently read this from a commenter on a political forum: "I don't expect them to be able to give absolute precision for something this unprecedented, but I do expect them to be able to give any rationale at all. "

If this doesn't sound like an inflated crisis designed to allow the greatest power grab in history, I don't know what does.


valdez said:
Our government cannot protect us from this crisis. They can try to bail out as much as they can to soften the blow, but the end result will be relatively the same. Most Americans (myself included) want to see our government step out of the way and allow the market to fail on it's own, as painful as it's going to be.
September 24, 2008

Luke said:
Our government is not the same government as the one in 1929. I doubt that we'll see a great depression on the same scale as experienced 80 years ago.
However we have a major financial crisis that will certainly have the power if not handled correctly, to send us into some kind of depression. Which will affect the whole world.

I'm glad I have a job that typically is last to be cut...

September 25, 2008

valdez said:
I wish I was you right now, Luke. We have an appointment with a bankruptcy attorney next Monday.
September 25, 2008

jovial_cynic said:
Ed - Oh man... sorry to hear that. I've known the economic situation was pretty dire, but I didn't really consider it hitting so close to home.
September 26, 2008

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