"It is with great reluctance that I have agreed to this calling. I love democracy. I love the Republic. The powers you give me I will lay down when this crisis has be abated!
Posted on 10/03/2008 9:32:23 AM PDT by NormsRevenge
In all of American history, it is likely that no government official besides a wartime president has ever been given as much power over taxpayer money as Treasury Secretary Henry M. Paulson Jr. would receive under the $700 billion financial rescue plan.
If the House passes the bill Friday, the Treasury secretary will acquire broad authority to buy and then dispose of hundreds of billions of dollars in mortgages and mortgage-backed securities at his sole discretion.
"They're appointing a financial dictator," said Ryan Ellis, tax policy director at Americans for Tax Reform. "Congress is giving a member of the executive branch virtually unlimited power for the entire economy."
Historical precedent for a Treasury secretary this powerful is hard to find: Alexander Hamilton enforced taxes by leading an army to suppress the whiskey rebellion; William G. McAdoo shut down the New York Stock Exchange during World War I; Salmon P. Chase issued currency during the Civil War that he later ruled unconstitutional as a Supreme Court justice; and Robert Morris personally guaranteed promissory notes during the days after the Revolutionary War, when the nation had virtually no credit.
Mr. Paulson's authority in the bill, as written Thursday, is likely to surpass all of those.
"Since this country started, since the Constitution in 1787 ... this country has never done anything like this, given this much power to one person," said Rep. Louie Gohmert of Texas. "It's just wrong to our principles of American democracy to give one person this kind of power."
(Excerpt) Read more at washingtontimes.com ...
And you’ll like it.
Goldman Macht Frei.
Eat drink and be merry..
It is Oktoberfest. ;-)
Wow. That was pretty stupid of them. I wonder why somebody didn't try to stop them...
;^)
(Coining an accurate term)
Forget it Norm, it’s all about Sarah here today. Even with the bailout vote.
May be he will use it to buy back the country from the international pawn shops and hand it back to its citizens. /s
Exactly what I was thinking.
“In all of American history, it is likely that no government official besides a wartime president has ever been given as much power over taxpayer money as Treasury Secretary Henry M. Paulson Jr. would receive under the $700 billion financial rescue plan”.
More worry...Paulsen is only Treas. sec’y for the next few months. Moast likely the Messiah and Franlin Raines will get the slush fund to distribute to the slobs that don’t want to work and sit in the carriage while the rest of us pull it (remember Katrina).
No... they're giving the office the power of a dictator.
With McCain, that dictator may be Warren Buffett.
With Obama, who knows what crazy person may hold the office.
Either way, hold on to your wallet.
.. it’s all about Sarah here today. Even with the bailout vote.
—
Oh well. I tried. :-}
Billions in earmarks in Senate’s bailout bill
http://www.freerepublic.com/focus/f-news/2096743/posts
When the new administration comes in does the Treasury Secretary get replaced????????
“Bill gives Paulson unprecedented power...”
Bill who? Somebody call Bill and tell him to stop.
Like giving a shotgun to a blind man, there will be some kills and some collateral damage, but most the ammo will be wasted. Then he will come back and ask for a cannon.
Obama will be told who to place in that position.
1. That it is a good idea for Paulson to have control of this money.
2. That it will be a good deal for the United States to buy these distressed assets as long as they are bought at the market price
3. That oversight should focus on ensuring that the assets are bought at the market price
4. That he would be interested in participating in 1% of the deal if he could
5. That the government will make money from the deal in the long run.
1. Hank Paulson = Democrat
2. Hank Paulson = Former Goldman CEO
3. Hank Paulson executed a rapid takeover of AIG with $85 billion of taxpayer money (gun to their head – takes an 80% stake) and only brought the current Goldman CEO with him to the AIG “negotiations”. The deal requires the breakup of AIG assets (relevant for #10 below).
4. AIG = insurance company (among many other things)
5. Hank Paulson demands a blank check from the American taxpayer to take toxic assets off finance company books. This is the only acceptable method to him – he won’t accept a plan like the one Buffet did with Goldman (# 9 below) which would rebuild capital, gives the institution a 10x effect on the investment vs. a 1 to 1 like buying assets (for every dollar a bank has on its balance sheet in assets, they can lend 10), and it keeps the government out of the business of liquidating assets – the financial institution cleans up their own mess.
(Note: the US government will now own a large chunk of American’s homes.)
6. I saw a broker interviewed by CNBC on the NYSE trading floor. He said that he wanted the market to tank if the house didn’t approve the bailout [to change the opinion of the public who are 10-1 against the bailout]. It didn’t pass, the market tanked, the desired panic was created.
7. Warren Buffet = Democrat
8. Warren Buffet = Barak Obama advisor
9. Warren Buffet = major investor in Goldman Sachs for $5 billion (he said to Maria Bartiromo on CNBC that he would only have made investment if he knew a taxpayer bailout would be approved). He took perpetual preferred shares with a dividend yield of 10%, or $500 million a year. Those dividends take precedence over other payments to common shareholders. Seems like a sweet deal. Why didn’t Paulson consider this approach? Maybe because it doesn’t provide a door for his investment buddies to get their preferred shares, it only helps the taxpayer…?
10. Warren Buffet = insurance company investor (GEICO, General RE, etc.)
11. Warren Buffet = future owner of AIG assets?
12. Warren Buffet is now a major investor in GE - $ 3 billion (terms are similar to those struck with Goldman Sachs). About half of GE’s income comes from their finance division (and they will also get a little taxpayer help?).
I didn’t think I’d see such a blatant Putin-style nationalization of our free market economy. Hank Putin: Trust me, this is a meltdown that no one saw coming, this deal is only way out, and you’ll make the money back later… wink, wink…
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