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.

The Bernanke-Paulson Coincidenza

What do the Chairman of the Federal Reserve and the Treasury Secretary really have up their sleeves. The slow trickle of truth unfolds. The Federal Reserve waived the rules today to allow American Express to become a bank so that they can have easy access to Federal Reserve funds whenever they want to. Goldman Sachs became a bank. Morgan Stanley became a bankl We really didn't ask why because Bernanke and Paulson have convinced us that it had to be so; we had to save our financial institutions.

In addition, Treasury Secretary Paulson single-handedly changed tax law section 382 allowing companies to assume the debt of acquisitions thus off-setting their gains and significantly reducing their taxes. This loophole was closed in 1986 by Congress precisely to prevent companies from misusing this statute to circumvent their tax liability. Perhaps the treasury saw the benefit of giving good companies incentive to buy up losing companies but they don't have the authority to change tax law. Wells Fargo used this statute the very day it was unhinged to snap up Wachovia out of Citibank's grip successfully reducing its tax liability by $25,000,000,000.

Amidst off this, Paulson and Bernanke came begging congress for a $700,000,000,000 bailout package to rescue our financial institutions. Basically this gave them a multi-trillion dollar pot of funds to dole out to whomever they want to and now they don't want to give us all of the details for any of it. These Kings of the Universe have plundered the taxpayer, plundered the Federal Reserve and plundered the Treasury with virtually no oversight.

The two highest financial institutions in America have been hijacked by Bernanke and Paulson for in the process of saving our financial institutions, they have undone all of their own regulations. This can't be any accident. This doesn't look good.

How much more are we taxpayer's going to give to the cause?

Well, Obama has seen his office and Mrs. O has seen her house. I must admit that every time I hear the phrase "President-elect Barack Obama" or just plain "President Barack Obama" or "President Obama", a warm tingling runs through me, I still want to jump for joy, I am still so excited...and as we soak up every detail of the transition like our lives depend on it; they do to a certain extent.

Now that the greatest reality show on earth is over and to make matters better, the best person won, the grim reality of the economy takes center stage once again. Last November when the fundamentals started to show deep cracks, there was hope that things would turn around this year, maybe, somehow, but the truth is the economy just keeps getting worse and to impress upon ourselves the sheer magnitude of this downward spiral it is literally sucking the taxpayer's $2,000,000,000,000 investment into the vortex. An investment for which we have no accountability whatsoever and where the bankers and financiers are still getting their trophy bonuses.

Lest we forget the most openly self-gratuitous bunch, AIG executives, spending close to $500,000 at a true 5 star resort (I also went to this resort courtesy of another pre-Chapter 11 company 4 months before it went bust during the 2001 tech bubble) after getting their first round of $85,000,000,000 worth of taxpayer funds. Well wriggle your nose like Samantha, that amount is up to, ta-da $150,000,000,000.

If AIG pulls themselves out of this one then I am a monkey's uncle since we, the taxpayer, have not seen any accounting. So what is the total amount of insured credit swap derivatives we are holding? Ahem, we are the majority share-holder, are we not, especially since the original deal has been repealed and replaced with Warren Buffett-like favorable terms where we get our preferred shares this time around. The truth is the total is too monumental and AIG is wishing; hoping to hang on for another year until things turn around in 2010. Well, join the club, so is GM and everybody else. How much more are we taxpayer's going to give to the cause?

President FDR Obama is expected to do some serious doling; the part that the Republicans fear. Well, now that the Republicans have spent us into bankruptcy, the Democrats will have to practice restraint now or else they are the bad people. Already we have saddled our new President with so much hope that we may have already made his task too great. Can one man save the economy? That question will be answered in season two of the greatest show. Thank goodness for the show.

The Change: President Now

As the realization of the change sinks in we constantly mull the significance in our minds. What does this mean for all minority peoples, their children and themselves, their future, their fortune, their limitless opportunity, now sanctioned, stamped and guaranteed.

Now that the dust has settled, we can survey the landscape and it doesn't look good at all; more layoffs, more economic unrest and depressionary figures that have not been seen for decades. The Dow slides another day not in response to the election as fools may claim but because it has been doing it all year. Granted, excitement about the election underscored a rally on Tuesday but the fundamentals are still bad and we now have no election distraction.

All of this is impressed upon the President-elect has he moves to swiftly elect his aides, staff members and cabinet to assure and calm America that he is still on the boat. Even though his inauguration is over two months away, America really wants him to be President now. Even George W. and Laura want the Obamas to come to DC now; George says "this is your office" and Laura says "this is your house." They wish they could say, "take it tomorrow."

The two plus months to inauguration used to be a rest; the President-elect disappeared for a while, chose his staff and re-appeared to take his oath on the Qur'an, fear not mongers, the bible and off he went to save the world. We must remember that FDR in the same situation had until March before he was inaugurated while Hoover (Bush) presided over continued economic devastation. FDR took the politically advantageous course, he stayed silent, did not show his hand and swooped in to be the savior of America. Obama will have a Press Conference tomorrow so it is clear he will not be driving himself out of the hotel in his gold Toyota Sequoia on his way to Disney Land. Obama, under the tutelage of John Podesta, former head of Bill Clinton's transition team, will field the middle, since Podesta, having learned from his previous over-conceived expediency-busting rollout will push to appease the impatient Americans with worthy choices sooner than later.

Whatever the case the post-election frivolity need not consume me, I now have more time to exist as a human, to accept free tickets to the Northport Theatre courtesy of the Smithown Chamber of Commerce. I had a lovely evening, the first date I have had with my husband in years (we always take the kids) and we could revel in the fact that as minorities we ruled the world, silly though it may be, we were the only ones. We have been in this situation a hundred times before but this time we truly belonged as the suburban educated people that we are unencumbered by race and ethnicity.

I'm not sure if this observation is even necessary because the show was flawless, the production was classy and the performances were 100%. We would have had a ball, regardless.

Faith Restored in America

The outpouring of emotion was so intense: tears streamed down faces in glory, hope, admiration and elation as we witnessed a giant step for humankind. Jessie cried, Oprah cried and even Colin choked up as we celebrated and breathed our collective sigh of relief that Obama's 21 month Presidential campaign ended in such a decisive victory that there was not one shred of doubt to upend. We can ride high on the sheer magnitude of Obama's victory. Faith has been restored in America evidenced by the whole world cheering with us; people of all faiths, nationalities and races dancing in the streets in cities and towns across America and the world.

240,000 people in Chicago turn out for Obama's victory speech.

An electoral margin of 2 to 1 over McCain.

52% of the popular vote.

Many Americans were inspired to vote for the 1st time in their lives.

American children were energized and engaged in the political process.

McCain's speech was gracious and welcoming.

Obama's speech was sobering and commanding.

Sarah Palin was unceremoniously dismissed.

And the stock market tanked again today reminding us that there is so much work to be done.

"They Said This Day Would Never Come"

Its 9:37 Eastern Time and I'm calling it. President Barack Obama. Hallelujah. The only fitting words I can think of are the opening paragraphs of his victory speech in Iowa, Jan 3, 2008.

"You know, they said this day would never come.

They said our sights were set too high. They said this country was too divided, too disillusioned to ever come together around a common purpose.But on this January night, at this defining moment in history, you have done what the cynics said we couldn't do.

You have done what the state of New Hampshire can do in five days. You have done what America can do in this new year, 2008.

In lines that stretched around schools and churches, in small towns and in big cities, you came together as Democrats, Republicans and independents, to stand up and say that we are one nation. We are one people. And our time for change has come.

You said the time has come to move beyond the bitterness and pettiness and anger that's consumed Washington.

To end the political strategy that's been all about division, and instead make it about addition. To build a coalition for change that stretches through red states and blue states.

Because that's how we'll win in November, and that's how we'll finally meet the challenges that we face as a nation."

THANK YOU AMERICA!

His Story

My fingers are crossed, my toes are crossed, my nerves are crossed...I'm not sure I can put together a cohesive sentence. This is the eve of a real opportunity for Americans to step forward into a better era and a better history. Tomorrow, history will be made regardless of which party wins this election. This is the only instance where Barack Obama and Sarah Palin can be mentioned together in the same light; he may become the first black President, she may become the first female Vice President.

It is pretty clear Barack Obama should win this historic round. Barack Obama has run a masterful campaign and he has transcended the realm of mere candidacy to become the leader of a movement; a movement that will shake America out of its hallowed racial barriers towards an America that is inclusive of all and a positive beacon for the rest of the world. As Obama states often, the road will not be easy even if he is chosen to lead, for the America that he deserves to be handed tomorrow will be a mere shadow of its former self, hollowed out by a self-serving, arrogant leadership that has bled it dry of whatever virtue it had left.

To my dear friends, who have walked the walk, talked the talk, and pounded the streets to gather support for Obama; who sacrificed their time and energy to promote victory for the rest of us, may your tireless efforts be rewarded tomorrow and may we all share in the glory.