I am trying to stay awake while watching the Senate’s Banking Committee hearings on the Government’s plan to bailout Wall Street. I do definitely not like what I am hearing. I have to admit that I got caught up in the hype. But whose hype is this anyway? It certainly is not mine. It is the hype of those who stand to lose the most!
In yesterday’s edition of the New York Times, Columnist Bob Herbert wrote: “Lobbyist, bankers, and Wall Street types are already hopping up and down like over-excited children, ready to burst into the government’s 700 billion piñata. This widespread eagerness is itself an indication that there is something too sweet about the Paulson plan.” And why is President Bush demanding that the Congress do this by the end of the week?
The very idea of buying toxic mortgages securities’ seems strange to me. Who are we supposed to sell them to in order to recoup the losses to be incurred by the American taxpayers? Right now I am being told that we would be worse off if we didn’t give Wall Street its 700 billion welfare check. Paulson and Bernanke are talking a lot of Wall Street economist’s double speak. I don’t understand any of this. How is the 700 Billion going to be divided up? Who gets to say who gets what? And why do I keep hearing the number 1 trillion? What type of government oversight will there be?
But most importantly what I am not hearing is what this is going to do to help the people on Main Street. If this plan covers the costs of all failed mortgages and in effect pays off a loan, does the homeowner get his or her home back? As I sit back and watch men in suits worth more than my net worth only a single image comes to mind and that image is of that little Dutch boy with a finger in the dyke. I know there are a lot of smart people out there. Can you break it down into language that the average Joe can understand?