King Henry and Toxic Bank Debt
What is misrepresentation? What is bait and switch? When is fraud really fraud? What is Constitutional process? Never during a national emergency or any other time in this modern American world.
The nation was advertised as hanging on edge of a national precipice by the Bush administration. We must buy toxic assets to get those assets off the market or we face certain collapse. Now wasn’t soon enough. The governmental marketing committee pushed the issue as Congress bought off on the measure, despite huge public opposition to the bailout.
Now King Henry Paulson is using the vast powers that Congress gave to him as the new economic czar of the United States. In theory, thanks in part to the revised $700 billion bailout, he is not entirely immune from mistakes on his part and he must submit to a certain amount of tacit oversight so that Congress feels secure. With all that power, King Henry has decided that nationalizing banks of his choice is much more important than buying up all that worthless debt that threatens the world. Yes, banks will fail. However, if King Henry likes a bank, that bank will succeed with the power that Congress has embued.
If King Henry lavishes banks with enough credit, he will overcome any capital shortfalls while furnishing taxpayers ownership in an institution that is probably worth less than it ever was because of bad banking management choices. How can American lose if it puts all of its’ apples in the same basket? Now that Congress has given King Henry permission to spend that $700 billion plus, he is going to do something else because he can. Since many Republicans, like John McCain like the idea of investing directly in banks, many politicians remain quite happy even if the Constitution has been turned on its’ side. This started from the very beginning. The original bill must be proposed by the House, but the Senate found a clever way around that little Constitutional trifle by using the old pork barrel and a few just causes to legitimize the proposal.
Strangely, Britain’s Prime Minister Gordon Brown has done more during the same amount of time than Paulson has while he promised to bail out the nation during the proclaimed national emergency. Gordon Brown is furnishing direction to much of the world while Paulson appears to be glued into the bureaucratic action of delegating authority to only God know who. Europe is even ahead of the game by insisting that new updated rules be drawn up for a new modern age of banking. The U.S. has hardly hinted at such a possibility. Wall Street and U.S. politicians prefer the old ways.
King Henry still hasn’t delivered a thing despite the trust that Congress has lavished on the former Goldman Sachs superstar. Perhaps he is still waiting for an impoverished nation to send him the credit to spend. If he is waiting for a stimulus from the IRS like the American taxpayer, the nation could have a problem. Even the Federal Reserve has mentioned quietly that if King Henry doesn’t act quickly, the ability of the bailout to do the job of saving the nation from banker and political corruption is highly questionable. Yet, Paulson has changed his mind. We are in uncharted territory, but the U.S. Treasury hasn’t started yet. King Henry has called for action and yet he is the King of Inaction. ~ E. Manning