The Largest Blank Check in History?

Congress is rightfully raising its hackles on the bailout proposal. This, courtesy of Greg Mankiw:

Rep. Jeb Hensarling (R., Texas), leader of the conservative Republican Study Committee, is gathering signatures for a letter to Messrs. Bernanke and Paulson stating that government bailouts “have set a dangerous and unmistakable precedent” for the federal government. “Federal investment in such large amounts of private ompany stock has the appearance of a socialist and not a free-market approach to managing our economy,” the letter says.

Newsletter

Get a weekly recap in your inbox every Sunday of our best stories from the week plus a primer for the days ahead.

Find It

Search our directories for...

Restaurants

Restaurants

Bars

Bars

Events

Events

Attractions

Attractions

View All

View All

Comments

15 responses to “The Largest Blank Check in History?”

  1. Gwyon says:

    What the hell is this bailout business all about? NorthPark Mall is thriving.

  2. Long Memory says:

    Well, la-di-da, Wick. They’re gonna get a buncha signatures! That’ll show Wall Street. Just like the time everybody got up to say how terrible torture is, and then signed on to the torture bill. (It didn’t really say we’d torture people, but wink-wink, we knew, didn’t we?) So Jeb and others in Congress are gonna make their points and here’s the point the White House will make. We’re probably within a matter of hours of the Bushies starting to tell Americans that Congress is “holding American workers hostage.” It doesn’t have to be true, it just has to be something Republicans can use in an ad the next few weeks. Isn’t it funny how this stuff happens right before an election? Well, now that you mention it, I guess it’s not.

  3. hoilaart says:

    The *appearance* of socialist approach? Yes, and the Gulf coast recently had an “appearance” of a hurricane…

    Can you say Value Added Tax? I’m guessing around 18% – that should address the “appearance” in four or five short years.

  4. investor says:

    Has anyone checked oil prices today?

  5. Read Section 8 of the proposed bailout:

    “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency. ”

    They can’t be serious.

  6. investor says:

    The Street claims to be broke but some have enough money to drive oil prices sky high. I find it odd that once the Fed started buying and bailing out these private corps, at the same time oil started rising. I understand the dollar is falling but this has more to do with speculators. I don’t hear Washington’s plan to deal with speculators.

  7. “Deal with” speculators?

  8. He Kexin says:

    Was it Morgan Stanley that told congress that the rise in oil prices wasn’t speculators but then told their most important stock holders it was?

  9. Investor says:

    Looks like someone took a butt kicking on oil contracts today. It was most likely those former investment banks that we’re going to bailout.

  10. Dubious Brother says:

    You might want to take a look at this

    http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html

    to see who the bail out beneficiaries were buying off. Remember, Wick’s candidate was only in the Senate for 2 of the 19 years in the study. It didn’t take B Hussein long to figure out Washington D.C.

    They turned the home mortgage business into a Las Vegas crap shoot and when the big boys lost, they just passed it onto the American people with the help of those that had already been bought.

    No Palin on the list and couldn’t find McCain either.

  11. Jason says:

    @DubiousBrother:

    Yep, good ol’ “Let’s Deregulate!” McCain sure has no ties to these companies. I guess in all of your research, you neglected this little tidbit: http://tinyurl.com/3fkcuy

    Here’s the choice bits:

    Senator John McCain’s campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say. […]

    “The value that he brought to the relationship was the closeness to Senator McCain and the possibility that Senator McCain was going to run for president again,” said Robert McCarson, a former spokesman for Fannie Mae, who said that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac together paid Mr. Davis’s firm $35,000 a month. Mr. Davis “didn’t really do anything,” Mr. McCarson, a Democrat, said.

  12. Dubious Brother says:

    Jason – read the whole article – it’s even the New York Times.

  13. Investor says:

    Dubious Brother
    I hate to tell you this but both sides are at fault. I do recall that Phil Gramm created the Eron Loophole and that’s what started the ball rolling. All these guys tell you what you want to hear then when they get to DC they owe the lobbyist or get bought off by the lobbyist.

  14. Investor says:

    That would be Enron Loophole. I guess I hate spelling and saying the word Enron. I’m sure the city of Houston agrees.