Another Blank Check?

A lot of people today are trying to put the brakes on the proposed $700 billion dollar bailout of Wall St. that President Bush and the Treasury department are saying is needed NOW, NOW, NOW after months of saying no to more regulation and government intervention.

Why such urgency all of a sudden? And why, as Krugman asks in today's NY times, is it even reasonable to ask for the taxpayers to foot a $700 billion bill that would give Henry Paulson dictatorial authority regarding how and where the money is spent, plus immunity from review “by any court of law or any administrative agency”?

President Bush is urging swift and decisive action "to shore up our markets and prevent damage to our capital markets, businesses, our housing sector, and retirement accounts," and asking us to trust him and his delegates with our money. Hey, why shouldn't we?

For an administration with an egregious record of squandering taxpayer money to expect a blank check takes a lot of gall.

While most economists agree that some action is needed, there is growing skepticism and unease about the speed with which such an enormous federal bailout is being pushed forward by people who only weeks ago were saying that governments shouldn't meddle with free markets. At a campaign rally yesterday, Obama had this to say about the bailout plan:



What can you do?

Find the contact information for your senators.

Call and let them know that while you support preventing financial collapse, a bill that doesn't provide accountability, oversight, or ensure that returns on the investment come to taxpayers before Wall St. executives is unacceptable.

Then, report that you called so your input can be tracked.

You can also sign a petition asking Congress to put Main St. before Wall St.

The terms of this bailout will significantly influence the economy that the next President inherits and shape how much control any of us has on where our money is spent, and if or when we see any return on investment.