Massive Theft of Taxpayer Money

03/15/2008

Paul Munnis


In my opinion the most massive raid on the U.S. Treasury in the history of America has been organized by the Bush Administration.

They are handing out Billions of dollars to financial institutions and banks in a massive give-away that transfers money to institutions like Bear-Sterns without getting a nickels worth of equity for taxpayers in return. That these companies were also campaign donors to the Bush Administration adds shame to the act.

What should be happening is that we swap cash for equity and the equity then should be transferred to the taxpayers. That is to say that the bailout should not be a give-away it should be a low interest loan repaid with interest to the taxpayers of America. Maybe it should be in the form of a stock swap so that Congress sits on the board of directors and protects our assets in the future. In so doing it will help hold down tax increases for you and me while still resolving the financial crisis. Where are the “no new taxes” voices when there is a chance to earn a return on investment for taxpayers that could be used to hold down taxes?

Once again Congress is not doing a proper oversight job and this time it is Democrats who own the Committees and who need to do the oversight. Democrats need to step up to the plate, hold hearings, and demand that taxpayer interests be protected. First thing on Monday morning the Fed Chairman and the Treasury Chief should be testifying before the House Finance Committee with plans to protect taxpayer interests. If they lack a plan then Congress should help them to form one.

One of the oldest scams in the world is to create a real or imagined crisis and then use a government bail-out to resolve that crisis. It swings open the doors of the U.S. Treasury to raiders who then help themselves. I think that is what is happening here and that it must stop.

Sure there is a crisis. Alright -- then we should help to resolve it. But not for free when we have a failing medical system and a Social Security system that the government owes a fortune to and can’t repay. Not when we are printing money as fast as we can make paper. Not when our bridges and highways are in disrepair. Not when people are still losing their homes but the institutions get bailed out instead of the homeowners.

Here is one way to cover those problems – make low interest equity loans directly to these institutions and demand that they repay the loans on a schedule. That’s what they do to homeowners needing a mortgage and a turn-about is fair play. Another way is to make low interest loans available directly to the homeowners and thus cover the debt.

The bailout money belongs to taxpayers and not to Bush and it should go to taxpayers in need and not to institutions in need unless we get equity in return. The amount of equity should match the risk.

People need to wake up and demand that Congress take control of this mess.

Get Bush’s hands off of our money.

Wake up Congress and get with it.