Posted on 11/18/2008 5:58:27 PM PST by Libloather
Paulson: Bailout Plan 'Adjusted' To Reflect Crisis
Treasury Secretary, Fed Chairman Defend Bailout Management
Nov 18, 2008 11:15 am US/Pacific
WASHINGTON (AP) - Treasury Secretary Henry Paulson told Congress Tuesday he opposes tapping a $700 billion taxpayer-funded pool to help struggling U.S. automakers as he and Federal Reserve Chairman Ben Bernanke defended their management of the bailout program, just one week after the administration abandoned the original strategy behind the rescue.
Although having a U.S. auto company fail during such a fragile time for the economy would not be a "good thing," Paulson told the House Financial Services Committee that he remains opposed to diverting $25 billion of the bailout money to aid Detroit as the panel's chairman Rep. Barney Frank, D-Mass., and other Democrats want.
"I don't see this as the purpose" of the bailout program, which is intended to stabilize jittery financial markets and get lending flowing more freely again, which eventually should help revive the ailing economy, Paulson said.
The U.S. has "turned a corner" in averting a financial collapse, but more work needs to be done to get things back to normal, he said.
Focusing the bailout program on infusing billions into banks -- and possibly other types of companies -- to pump up their capital and bolster lending to customers was deemed a faster and more effective approach to stabilizing the financial system than buying rotten assets from financial institutions, the centerpiece of the original plan, Paulson explained.
Buying those toxic debts would have required a "massive commitment" of the bailout money, Paulson told the panel. As economic and financial conditions quickly worsened, it became clear that the first installment of the money -- $350 billion -- for that purpose "simply isn't enough firepower," he said.
(Excerpt) Read more at cbs13.com ...
They and their ilk, including Barack Hussein Obama, created the crisis, and then were successful in using their government positions and a complicit press to blame the entire thing on others.
But the truth will come out...and they will end up wallowing in their own mire.
Being drilled by Barney Frank no less...this whole lot is hopeless.
I have no faith in Paulson or Congress. Or Obama, for that matter.
Paulson is a bait and switch thief.
Paulson explained why he wanted it in a dramatic and dire way.
Congress approved it, explained how the mtg bailout was crucial to our nations economic survival.
And the president signed it for a specific purpose.
Now Paulson wants to use it for something else and says no need for mtg help. If he attempts to use it for something else, then he needs to be prosecuted and imprisoned.
He needs to resign immediately for incompetence, or Bush needs to fire him and actually do something right during this waning lame duck year.
Ya know....bailing out a productive(?) industry generating jobs, employment, and tax revenue...and the worlds largest automaker...vs. a bunch of Wall Street financiers who would’nt have to thin dimes to scape together without a 100 yr heritage of American industrial production? Whatta choice!!
When do we taxpayers get our bailout? I’m really fed up with carrying the nation’s deadwood, be it poor or otherwise.
Bailout is just another name for nationalizing and putting the state in charge.
Why not just change the name of our capital from Washington to Washingrad and be honest about it.
This just smacks of Marxism and communism.
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