As we are trudging through the most challenging economic climate of our lifetimes, our Nation’s leaders are trying to do whatever is possible to stop the economic slide and press to stimulate purchasing, investing, and spending. The most plausible idea that has been put into effect is to inject $700 Billion of cash (coming from We the People taxpayers) into the institutions of lending and credit to save them from closing their doors and send relief to business customers, homeowners, and to extend new credit. While this idea is a good idea, the only thing that matters is how this plan is executed. What I read about a recent audit performed by the ‘Government Accountability Office’ (GAO) on the first comprehensive review of the ‘rescue’ package was quite disturbing to me that has led me to post this blog. The GAO has come to the conclusion that The US Treasury Department, who is the custodian of the funds for the ‘rescue’ plan, has NO oversight on what is done with the money after it has been issued to recipients applying for this additional money. What this means is that even though money from the ‘rescue’ plan is SUPPOSED to be used for saving business loans, mortgages, and extending new credit is actually going to the salaries of top pay executives, dividends to investors, and the funding of other projects such as acquisitions of other credit institutions. What’s worse is that after the results have been made public to Congress, The President, The President elect, etc., the audit concluded that the Treasury Department DOES NOT have any intentions of adding oversight for these sorts of funds for the future! And as of right now, NOONE is doing anything about it!
Listen, I have no problem footing the bill for the lack of critical judgement that led to this economic recession if it’s to fix what’s been broken. But as a taxpayer, I am furious and frustrated as hell sitting on the sidelines and watching my money going to the SAME ilk of greedy credit management that crippled us for the SAME detrimental business decisions that has put us in the place we are in today. Haven’t we learned from our mistakes?? Why aren’t any of our lawmakers or anyone in media talking about this as a priority for our economy?? This is no rescue plan, this is a bailout.