Treasury Secretary Paulson Decides Bailout Money only Goes to Big Banks

Secretary Henry Paulson took to the podium this morning to announce that the government has decided not to offer homeowners facing foreclosure any assistance and will instead just use the taxpayer bailout money, via the T.A.R.P (Troubled Asset Relief Program) program exclusively to purchase stocks in ailing banks in order to bolster their cash liquidity.¹ This is in stark contrast to what Secretary of Paulson said was the biggest threat at the time the legislation passed, homes in foreclosure.

Meanwhile,investment banks like Goldman Sachs and Morgan Stanley are still paying out bonuses to their bankers totaling $6.8 Billion and $6.4 Billion respectively.² Additionally, as Secretary Paulson effectively moved the goal posts regarding T.A.R.P., credit-card giant American Express gained approval from the Federal Reserve to become a “commercial-bank” thus opening the door for the credit giant access to bailout money.³

Fellow readers the snowball effect of moral hazard has indeed begun to gather critical mass. As predicted other struggling industries from a lobbyist group representing Hispanic Plumbers and Heating specialists⁴ desiring to be hired by treasury to maintain the purchased foreclosed homes to the faltering American auto industry, the leeches now have their smarmy hands out begging to be recipients of our hard earned tax dollars.

Finally, while this blogger never supported the bailout; partly due to my philosophy and partly based on my ingrained cynicism, this action by former Goldman Sachs employee, Treasury Secretary Henry Paulson, is dispicable and wholly indefensible.

How dare this plutocrat testify before Congress begging for speedy Congressional approval of the bailout bill based on the lie of helping down on their luck homeowners, when in fact it was destined for fellow plutocratic investment bankers. Shame on Congress for not seeing through this transparent scheme to secure the fortunes of Paulson’s fellow plutocrats. Shame on Senator McCain and President-Elect Obama for their lack of principles, vision, or judgement which could have wholly halted this hastily arranged scheme.

Fellow readers, we must, for the sake of our Republic, remove the private bankers from their throne of power over the American economy. If we do not, they will continue to wholly plunder and bankrupt our Treasury with their crafty corrupt schemes. The time is now upon us, to take a stand and begin the process to End the FED and break the bailout.

Source(s): ¹ CBS MarketWatch – “Text of Paulson’s Remarks on TARP • ² CBS News – “Hard Times, But Big Wall Street Bonuses • ³ The Press Association – “American Express to become bank” • ⁴ New York TImes “Lobbyists Swarm the Treasury for Piece of Bailout Pie”