"The Secretary's authority to purchase Troubled Assets under this Act shall be limited to $700,000,000,000 outstanding at any one time" --- a statement from U.S. Treasury Department legislative proposal for an asset-purchase fund as delivered to the Congress -- entire document was obtained by Reuters on Sunday, September 21, 2008
As financial chaos seemed to rule supreme for a number of days recently and announcements kept coming out of a place called Washington DC, it seems that big financial institutions had little to worry about – if going belly-up was in their future, why get into a state of deep distress about it? The government would come along on a rescue mission and bail them out – the president even took a lot of time to comment and state that it was necessary to do these acts of mercy in providing billions of dollars and keep these outfits afloat! And this was backed up by his Secretary of the U. S. Treasury, Henry M. Paulson, Jr.
Now, here is the first question – are the CEO’s and those who are 2nd in command of these financially strapped institutions as well as other upper level management people going to still receive all those plush salaries, lavish “perks” and “golden parachute” benefits? Shouldn’t this group be penalized for their very flawed “leadership” which contributed to the financial fiascos involving their companies/institutions? If the leadership had been careful, cautious and discerning in charting a course through rough seas, the “ship” would still be stable and not on the verge of capsizing! So if the captain causes the ship to end up on the rocks, he should not be rewarded should he?
Second question – will all these companies and institutions that are beneficiaries of the proposed 700 billion dollar “bail out” be required to pay back what they have received by way of a very expensive rescue from financial disaster? What arrangements will be made public regarding a pay back schedule? Also, to what extent will U. S. taxpayers be informed that their money used for the rescue operation will be returned to the U. S. government?
And while we are on the subject of the public being informed – will we taxpayers be told in detail what those top level people are being paid plus the “perks” and how all that has been reduced as the money for the bail out is being repaid to the federal government? Would it not be good if a sizable percentage of those CEO salaries were added to the repayments made each month?
Yes, I, along with many other people, at times am a dreamer – this happens to be one of those times, since we all know the answers to the foregoing questions, do we not? The mix of politicians with their meddling in business affairs along with wealthy and powerful people in the corporate world results in a concoction that is far from producing the smell of a rose!
Why should I fear in the days of evil, when the iniquity at my heels surrounds me? Those who trust in their wealth and boast in the multitude of their riches, none of them can by any means redeem his brother, nor give to God a ransom for him; for the redemption of their souls is costly, and it shall cease forever; that he should continue to live eternally, and not see the Pit. For he sees that wise men die; likewise the fool and the senseless person perish, and leave their wealth to others. Their inner thought is that their houses will continue forever, and their dwelling places to all generations; they call their lands after their own names. Nevertheless man, though in honor, does not remain; he is like the beasts that perish. This is the way of those who are foolish, and of their posterity who approve their sayings. Selah --- Psalm 49:5-13