Well, well, well. The more the financial “crisis” and the Bush administration-led “solution” play out, the more the whole thing stinks. How much does it stink? Enough so that there should be no way any member of Congress, Democrat or Republian, votes to give the Bushies the power they’re so desperately seeking.
First, it’s not so much of a crisis as Bush would have us believe. Bush’s cronies have been sitting on this legislation for months. Which would indicate prudence except they’ve been talking about how good the economy is doing and how stable it is this whole time. This plan could have been sold faster if they said at any time that the economy was starting to look weak because of the housing and financial institution crises. More to the point though, the Bush administration waited for months while the financial markets got slaughtered. Why? Because they didn’t want another one of their failures to go public prior to this year’s election. Remember, many Republican Representatives and Senators came out over the weekend saying Democrats shouldn’t try to score political points with this crisis. Their faux concern rings even more hollow now that the leader of their party did just that while allowing major corporations to fail and allowing our economy to sink further than it otherwise would have. They should work on cleaning up their own house before looking into their neighbors’.
Second, not only does the Bush administration expect taxpayers to foot the bill of foreign banks with bad debts, they want tax dollars to go to banks who aren’t even in trouble!
You have to remember, these are not all weak or troubled firms that own mortgage-backed securities. A lot of them are very successful banks and investment houses that have done very well, have been responsible, are holding performing assets that have value. They were not necessarily irresponsible players, and so you have to be careful about how you deal with them.
Why does the Bush administration want American taxpayers to help banks who don’t even need it? Because their solution doesn’t address the real crisis. There isn’t a quick fix to the mess we’re in. Banks don’t know how many of their assets are bad or what they’re actually worth. The legislation Bush wants passed can’t fix a problem that remains undefined. Democrats need to stand firm and wait for more solid information to become available.