Hank Paulson Has Gone "Rogue"

This week, the revelations about Treasury Secretary Hank Paulson changing tax rules and refusing to divulge the recipients of the Congressional bailout funds began to raise eyebrows now that the election is over and we have time to pay attention. Well, today we have our answer.

Secretary Paulson appeared before Congress today stating that he decided not to use the funds for what they were originally intended, to buy up troubled mortgage assets and, in fact, he had decided it was a better idea to inject capital into banks instead in return for preferred stock. Essentially he has spent and will continue to spend the $700,000,000,000 bailout funds in any way that he sees fit. Folks, he has gone "rogue."

Actually, capital investment in banks may be a better investment for us taxpayers in the long run than buying up toxic bank assets but shouldn't he have informed Congress first? He does not have the authority to use Congressional funds for any other purpose than Congress intended or does he?

Originally Paulson appeared before Congress with a 3 page ransom note requesting the money with no strings and even though cooler heads prevailed within the maelstrom and protections were written in on behalf of the taxpayer, the bailout bill was stuffed with so much pork so if Congress got theirs, I guess, Mr. Paulson would get his.

He is only back before Congress because they have to vote on giving him the additional $350,000,000,000 because they only released half of the funds to begin with. He has proposed a new plan for the remaining funds; to buy up other debt securities mainly credit card and auto loan debt that were packaged and sold to investors in the same way as mortgage loans. This also may not be a bad idea but are we sure he will even do what he says since he hasn't so far?

Mr King of the Universe will do whatever he wants with our taxpayer dollars and Congress will allow it. The Congress doesn't know who to give the money to either; everybody wants a bailout. American Express asked for $3,500,000,000 today. AIG already got theirs and then some. GM has been begging for $25,000.000.000 for a week. Personally I don't think AIG should get any more and GM's Union-contracted labor costs are too high and will drain the company regardless. But it is too late, the animals are out of the barn and nobody knows who to save first, the cows, the pigs, the goats or the chickens. So it will wind up as Barney Frank says, that the funds will be given out until they run out.