My Beautiful Wickedness

Beware Section 8
September 22, 2008, 11:15 am
Filed under: Uncategorized

According to my read of the current proposed bail-out legislation, it appears that section 8 of the proposal states that the Treasury Department (Henry Paulson) would be granted the power to make NON-REVIEWABLE bailout decisions. No oversight. No courts. No Congress. No administrative agency to put on the brake or even have standing to ask “what the hell do you think you’re doing?” We’re just handing him the $700 billion for him to distribute among his friends and relations and we will have no recourse.

Well, here’s the thing. Bank of America is worth about 168-170 billion dollars. JPMorganChase is about the same. Then the next tier down, you have Wells Fargo and CitiGroup weigh in in around 120 billion apiece. Then you have the third tier (Morgan Stanley, GS, Merrill Lynch), concerns that collectively are worth about $120 billion. That’s pretty much the entire banking sector. Now, let’s do some math…I’m coming up with around $700 billion. So we could BUY the entire banking sector for what we plan to plunk into “bailing out” a few companies? Is that the plan?

To me, this smells of a “hey, we’re running out of time to shore up the status quo while giving ourselves all crazy amounts of money…why don’t we run the “There Is No Alternative” play really quickly and our stressed-out, seriously indebted, overworked, and educationally left behind population won’t know what the hell hit them as we run out the door with all their money!” scheme.

I hesitate to cry kleptocracy, but damn. I’m just hoping that it turns out that this is the dummy proposal, the crazy one that they know won’t work that will make the other one that they really want passed look sane by comparison. This can’t pass. We’re in deep shit no matter what, but there’s no reason to swim down to the bottom.


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