Friday, November 14, 2008

The Problem With Big Government and Bailouts

Now that the bailout has has some time to sink in, we're seeing some of its effects. As expected, the government is providing little to no oversight and transparency into where the money is going.

-Excerpt from Washington Post article-

"In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.

Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.

Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed.

"It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

It was interesting to see the rush of all the companies who tried to get into the government program of buying companies common stock. Not just big banks, but insurance companies, regional banks, and other questionable industries. GE? I guess they have a finance wing. In my opinion, bailouts don't work. The government will continue to waste taxpayer money as long as we allow it.

Link to the complete article.

1 comment:

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