Posts Tagged ‘$350 billion given to financial institutions’

Where Has The Bailout Money Gone?

Monday, January 12th, 2009

I know Ryan, one of our loyal readers and a contributor, doesn’t believe “careless” (my words, not his) people should be bailed out.  But that is a done deal and the bailout money was allocated – but where is it exactly?  As recently as yesterday, soon-to-be President Obama stated, “When you look at how we have handled the home foreclosure situation and whether we’ve done enough in terms of helping families … we haven’t done enough.”

So far, financial institutions have been given $350 billion and it seems as though it is still unclear as to where it went.  Amazingly, banks and other financial institutions have received half of the allotted bailout money from the government with few rules, and most won’t say where the money has gone.  What does it really say about our current government to know that they forked over $350 billion and didn’t even ask for a receipt?  😀

The plan is to have the Senate vote on releasing the other half of the money so it would be available shortly after Obama takes office on January 20th.

Treasury Secretary Henry Paulson originally promised the money would be used to buy up mortgage-related securities whose falling values have clogged up credit markets and brought many financial institutions to the brink of failure.  The Bush administration has slipped on their oversight of this money and some members of the Senate aren’t scratching their heads – Obama’s administration has to do a better job of looking after the money.  It shouldn’t be too hard for them to do a better job since all they have to do is…something.

I would like to know if anyone knows of a business and/or person that has benefited from the first half of the bailout money.  I don’t, do you?

So we aren’t sure where the $350 billion is, the “Big Three” automakers got some money to help – money they shouldn’t have needed and $350 billion more is about to be released!  Good job!