“It’s not based on any particular data point. We just wanted to choose a really large number.”
– Treasury spokes- woman on the $700B bailout figure 

This kind of worries me. It means that no real analysis of this has been done. Before we start throwing money at the problem, shouldn’t there be better analysis?

Post from: EveryJoe

Why $700 Billion for the Bailout?

Yes, scary.

I’ve read on both Taxgirl and at My Two Dollars that the language of the proposal does not allow for any oversight of the Secretary of the Treasury as he doles out taxpayer funds to help save Wall Street firms. Here are some of the basics of what this proposal would do if passed as-is:

1. Advisers from Wall Street retained to decide who gets what. Huh? Let the architects of this mess figure out how to fix it? Really, I think it just means they get to figure out how to best enrich themselves.
2. No limits for executive compensation. See my outrage for #1.
3. No equity share for the government. I’m sorry. If the government is going to bail these guys out, there should be at least some sort of way for the government to recover something.
4. Decisions not reviewable. So one guy gets the final say. That sounds mighty like a dictatorship. Congress needs to do its job on this one.
5. Protections from lawsuits. Everyone involved cannot be held accountable for the results of the outcomes from whatever action is taken. Sounds like what is happening now. Great risks taken, but accountability is limited and the losses are socialized and spread amongst even the innocent.

This falls under the heading of Really, Really Bad Idea. And I feel it necessary to remind everyone of what happened the last two times Congress abdicated its responsibilities and authorized sweeping powers for the executive branch: We got the USA PATRIOT Act (which is anything but) and the Iraq War (a huge deficit-maker itself).

This makes the current satire email playing on the classic “money wire” scam downright relevant right now. Go read a version of it at the Angry Bear.

And then contact your representatives in Congress. Because the $700 billion bailout should not be railroaded through as is.

Post from: EveryJoe

$700 Billion Bailout: Power Grab By the Treasury?