MSNBC reported this week that the Bush Administration will leave at least half of the $700 billion bailout fund for President Elect Obama’s people to deal with. Treasury Secretary Henry Paulson has stated that he intends to leave $350 billion of the funds to be distributed according to the wishes of the incoming Obama administration.
Remember when passing this act was so urgent they were freaking out about waiting ‘until Friday’ to pass it? Remember when it was so urgent John McCain suspended his campaign to get in on the conversation?
I guess it wasn’t all that urgent after all. Or was the mere idea of economic stability the urgent component?
(Of course, this was all leaked on the condition of anonymity as the sources were not authorized to disclose the information.)
How to Spend $700 Billion
It may not be that Paulson and company aren’t interested in spending the money. They just might not have time to get it all done by Inauguration Day. According to MSNBC the bailout money is available as follows:
- $250 billion available immediately
- $100 billion can be spent without congressional approval
- $350 billion can be spent only with Congressional approval
- The $700 billion package, which was to be used to purchase troubled assets that banks were carrying on their books is now up for grabs. Paulson declared last week that in fact none of it would be used to buy so-called ‘toxic assets’. Instead, the Treasury Department is looking into investing in banks for partial ownership as well as possibly lending money to failing American auto makers.
- Does it seem to anyone else like the Bush Administration is passing the buck – $350 billion of them?
- Congratulations President Elect Obama! The mess now belongs to you.
- The lesson for the rest of us? Beware of those who claim the sky is falling!