Hey Paulson, I Got Somethin' You Can Bail Out

The Wall Street Journal had this to say about the ongoing bailout of Corporate America:

"The rescue efforts are evolving in ways that I don't think anyone anticipated ... "

I think they might mean the complete and utter circus that is "evolving" after the federal government put out a trough of loot. Treasury can't keep out the greedy pigs trying to feed. If they anticipated anything less they need to have their heads checked. Congress could have been smart and put clear restrictions on how the money was spent ... oh wait, they did ... and then conveniently did an end run around the rules to get their constituents in on the fun.

The first installment is almost all gone and the "reserve" will begin to spread out quick; especially with Congress clamoring for the money just as loudly as the constituents who will benefit.

Detroit just wised up and dispatched their lobbyists into the fray to defend their fair share of the taxpayers' money. And American Express conveniently gained "bank holding" status, which means they're now eligible to join the feast.  The credit arm of the auto makers are in the process of lobbying the government for the same title. I guess restricting TARP money to "credit lenders" is meaningless when just who fits that definition is to be determined.

Apparently, a lot of folks bought a new car they couldn't afford alongside their new houses. Detroit securitized their loans and sold them; which means we're all going to foot the bill. Congress is mulling whether to include a tax deductible for interest accrued on car loans to try and boost consumption.  I wonder how the foreign manufacturers are enjoying all of this - not to mention their consumers and hefty American Employee population. Someone should have told their workers that no matter how well they do they can't beat the big three; competition is an illusion in this country.

GM made a laughable proposition in its quest for TARP funds. They offered the American Tax Payers a stake in their worthless company in exchange for some money. Companies used to have to attract investors with the strength of their numbers and potential profits. That was a sucker's game apparently - especially for a business that burned through 7 billion last quarter. It's much easier to just use force.

The icing on the cake, however, is the way the tax payer is being treated now that their money has been stolen by Congress. The Fed refuses to disclose when, where and how their money was spent. Seem shady to anyone else? So much for political accountability. How the hell are we supposed to know whether our representatives screwed up if we can't see the results? Maybe that's the point.

Update:

Detroit (the city not the auto makers) now wants $10 billion, GE is getting $130 Billion tax payer insurance program, and Obama is asking for $50 billion to go to the auto makers.

Treasury actually put up a document online so that people can request their share of TARP.

And an independent research firm has deduced that since this bailout began, Washington has put $5 trillion on taxpayer funded credit. Thats a hell of a lot more than the $700 billion we were told this was going to take.