Bailout: What a Mess!

Can’t believe I’m saying this: For the first time in eons, I’m actually in agreement with anything Paul Krugman (who writes for the New York Times) has to say. In this rare instance, it’s his assessment of the current Administration’s proposed control-free credit market bailout.

We simply cannot give unfettered power to Secretary of the Treasury Henry Paulson to preside over this massive taxpayer infusion, un-supervised and unchecked. Wasn’t Paulson at the epicenter of this maelstrom as late as 2006, before he was plucked from Wall Street to occupy his current position? Every step of the way, as this mess developed, from mortgage institutions to Wall Street firms to major commercial and investment banks - banking regulators, the SEC and the Treasury Department looked the other way as shaky financial gimmicks were cobbled together to make a fast buck. And now we’re supposed to give a product of that same power structure the authority to act in any manner deemed appropriate - without any form of oversight or review? Just another case of leaving the fox in charge of the henhouse, isn't it?

I hope that Congress has the intestinal grit to resist acting rashly, just to act. We can't afford to put any “fix” into place without proper oversight provisions. Anything less is foolhardy.