The Senate Banking Committee will be holding a hearing today on the Administration’s bail out plan; I hope they ask some fucking good questions because we are talking about a shit-ton of taxpayer money at stake here.
What I am concerned about is the timing: Paulson and Bernanke basically pulled this at the last moment, on the night of the last legislative day last week as they briefed Congress in Pelosi’s office. They essentially gave Congress a week’s time to write the Mother of All Bail Outs (MABO from now on).
If you really think about it, this is a ridiculous proposition. What the fuck is Congress going to do BUT follow Paulson and Bernanke’s lead on this? Shit, most of the rank-and-file probably can’t tell the fucking difference between Morgan Stanley and Bank of America, let alone weigh in on the MABO. I mean they were really given no choice for all intents and purposes: they HAVE to do something, or at least appear to do something, before they drag their sorry asses back home for the home stretch of the election.
This is not to mention the ridiculously broad sweep that the Administration is asking: the original proposal was only three pages. To summarize, it basically said this: give us the money, and leave us the fuck alone! Of course I don’t expect Congress to give such broad and unspecific statutory power to Treasury and the Feds, but it’s not like Congress has ample time to deliberate either. There are only two legislative days left, and they still have yet to pass a single authorization bill.
In other words, Paulson and Bernanke are definitely taking the lead on this one, and for all intents and purposes, their every word commands Wall Street.
And if this does not scare you, well, you need to get your head checked son! We are talking about MABO here, $700 billion dollars, an amount of public money that could all go down in flames if this does not pan out as expected and will subsequently balloon the deficit to god knows how much (as if the deficit is not huge enough already!)