By Michael O’Connor
In 2006, Forbes listed Henry Paulson as the 81st top-compensated CEO, with an annual take of $16 million as the head of Goldman Sachs.
Now that same person, as United States Treasury Secretary, says the Congress must act by Friday to issue $700 billion in aid to the financial community or the system will fail disastrously.
The document he delivered to spell out how to save the U.S. economy and how he, as Secretary of the Treasury, will dole out the $700 billion in taxpayer dollars was:
THREE PAGES LONG!!!!
Contained in the three pages was the demand that no Court, Agency, or arm of Congress could alter, halt, or override the plan as administered, once the bailout is passed. His way or the Highway. Money first, additional regulation “after the crisis is solved.” Not in the coming weeks, or the next few months, not even when the new president is in office – only when “the crisis is over.”
For those of you who don’t remember the Savings and Loan scandal of the 1980s, take a look at who benefited from that bailout.
So, taking all this into consideration, who is Henry Paulson going to look out for when he takes control of the almost three-quarters of a trillion dollars?
Paulson is the former head of a large investment house that will benefit from the monies he is demanding from Congress. Other lobbyists from the banking industry will descend on Congress – NOW – and in the future if any new industry regulations are proposed. The lobbyists will shower Congress with money in exchange for influence. The lobbyists will protect the banking and investment interests. Who will protect the taxpayers’ interests?
The taxpayers are taking the risk, propping up a financial industry that was reckless and corrupt. We are offering to buy up the bad mortgage/securitized debts these banks and firms helped create. So, as the people offering to save the day, we should buy that debt for the lowest, bargain price, since it has so little value, according to the banks.
But the industry, and Paulson, want the taxpayers to pay not the lowest value, but a much higher, unspecified value. Are we not already proposing;to take bad debt off these business’ hands? Why would we pay more for it?
Please pay attention to this issue. Get as much perspective and information as you can and do not rely on one source to decide. When you decide, call your U.S. Representative and Senator and tell them what you think. Tell them to not forget about the people who will pay off that debt we are absorbing.
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BoingBoing is all over the bailout:
* Buy My Shit Pile, Henry!
* Your Chance To Mark Up The Wall Street Bailout Bill
* Paulson’s 419 letter
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Also going around:
The We Deserve It Dividend
I’m against the $85 BILLION bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a “We Deserve It” dividend. To make the math simple, let’s assume there are 200,000,000 bona fide U.S. citizens, aged 18+. Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion – that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a “We Deserve It” dividend.
Of course, it would NOT be tax free. So, let’s assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00! What would you do with $297,500.00 to $595,000.00?
* Pay off your mortgage – housing crisis solved.
* Repay college loans – what a great boost to new grads.
* Put away money for college – it’ll really be there.
* Save in a bank – create money to loan to entrepreneurs.
* Buy a new car – create jobs .
* Invest in the market – capital drives growth.
* Pay for your parent’s medical insurance – health care improves.
* Enable deadbeat parents to come clean – or else.
Remember, this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back) and, of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth, let’s really do it! Instead of trickling out a puny $1,000.00 “economic incentive.”
If we’re going to do an $85 billion bailout, let’s bail out every adult U.S. citizen!
As for AIG – liquidate it:
* Sell off its parts.
* Let American General go back to being American General.
* Sell off the real estate.
* Let the private sector bargain hunters cut it up and clean it up.
We deserve the money and AIG doesn’t. Sure it’s a crazy idea, but can you imagine the coast-to-coast block party?!
How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-i-v-i-d-e-n-d! I trust my fellow adult Americans to know how to use the $85 Billion “We Deserve It” dividend more than do the ‘geniuses’ at AIG or in Washington, D.C..
And remember, my plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? I think so.
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Sourced to T. J. Birkenmeier, and yes, we know the math doesn’t work. But then, neither does Paulson’s.
Posted on September 25, 2008