Even TARP was limited. This is more than criminal!
‘Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
– Barack Obama
But more than that the US government and the Fed are bankrupting America and destroying the US dollar.
In case you haven’t seen this yet:
– Fall Of The Republic – The Presidency Of Barack H. Obama (The Full Movie HQ)
– The Obama Deception
The Obama administration is a lot worse than even the Bush administration.
By Rep. Brad Sherman (D-Calif.)
In my questioning of Treasury Secretary Timothy Geithner before the Financial Services Committee on Wednesday, I focused on the new bailout authority included in the 618-page legislative proposal submitted by the Treasury Department.
In my opinion, Geithner’s proposal is “TARP on steroids.” Section 1204 of the proposal allows the executive branch to use taxpayer money to make loans to, or invest in, the largest financial institutions to avoid a systemic risk to the economy.
Geithner’s proposal reminds me of the Troubled Asset Relief Program (TARP), the $700 billion Wall Street bailout adopted last year, but the TARP was limited to two years, and to a maximum of $700 billion.
Section 1204 is unlimited in dollar amount and is a permanent grant of power to the executive branch. TARP contained some limits on executive compensation and an array of special oversight authorities. Section 1204 contains absolutely no limits on executive compensation and no special oversight.
When I asked Geithner whether he would accept a $1 trillion limit on the new bailout authority (if the executive branch wanted to spend more, it would have to come back to Congress), he rejected a $1 trillion limit, insisting that the executive branch be able to respond without coming back to Congress.
Both TARP and the Treasury proposal have vague provisions under which taxpayers might possibly recover any money lost through a special tax on the financial services industry. Under the Treasury proposal, only the very largest institutions could benefit from a bailout, but the special tax, if ever collected, would fall chiefly on medium-sized institutions.
Thus, the medium-sized institutions will be at a competitive disadvantage for two reasons. First, the largest institutions will be able to borrow money more cheaply because their creditors will believe that if the institution is unable to pay, the taxpayers will. Second, if there ever is a bailout benefitting a very large financial institution, the tax will be imposed on the medium-sized institutions.
Sherman, a C.P.A., is a senior member of the House Financial Services Committee.
09/23/09 06:10 PM ET
Source: The Hill