Where Has The Bailout Money Gone?
Written by: Tom Sawyer
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!
Tags: $350 billion given to financial institutions, $700 Billion Bailout, bailout money, bush administration oversight, senate bailout vote, TARP, troubled asset relief program
January 12th, 2009 at 10:03 am
Ok, here I go, but as always let me attach a disclaimer, two actually. #1. But for the grace of God, I could be in a horrible situation in life. I could be about to loose a home or car, etc. So I am not trying to be heartless about those that have and are about to. #2. I am not politically savvy and I am even less financially savvy when it comes to these kinds of discussions, with that said let me go back and ask a question that I think is what Tom means when he talks about careless.
Isn’t all of this bailout necessary because society has and thus lives in a “keeping up with the Jones” mentality? I remember, years ago, hearing for the first time on a news program, the commentators talking about the new thing young yuppie couples do is buy houses they can’t afford to furnish. It was more important to them to own the house and be seen owning the house, and all the prestige that comes with it, rather than actually being able to really afford a home! (a place to live with furnishings needed to live in the house) How comfortable is it to have a house that people oooooh and aaaaah about, only to live there and not have a kitchen table to eat at or a couch sit on? Then the flip side is those of us who have tried to be sensible, and live within our means, and live in a residence, I guess “less prestigious” but have a bed to sleep on, a table to eat at, and a couch to sit on.
So here’s the thing, what benefits do I get for being sensible? What monies will help my living situation? Sure, many of us could have taken the risks and made decisions that our bank account really didn’t support and live in the big houses in the nice neighbor, but it just wouldn’t have been a responsible decision. But had we known, many of us would have problem thrown caution to the wind and went for it! And check this out, is there such thing as bad credit these days? I have been told by a relative that has filed bankruptcy and has had a vehicle repossessed that I lack the initiative to take risks yet I have never filed bankruptcy nor had anything repossessed. Funny thing, I see many, many people who have been through one or both, able to get as much or more than me! They have the big houses! They have the “designer” cars! They live in the sought after neighborhoods. There is definitely something wrong with this picture! Come on!
I guess the squeaky wheel does get the oil and in this case, the good guys do finish last. How about along with the bailout monies we have the “atta girl and atta boy” monies!
January 12th, 2009 at 8:01 pm
Tom,
Sorry for my delay in responding to this post, busy day. You are indeed right that I don’t believe careless or more specifically irresponsible businesses should be awarded for their failures and poor business decisions. I find it absolutely absurd our government has handed out over a quarter of a trillion dollars with no contingencies. ARE YOU KIDDING ME? The public was against the original bailout and was against bailing out the automakers. If you ask me our entire government has forgotten what their roles truly are and I am sick to my stomach over it.
One thing I will correct you on however is the blame you passed to Bush. Let’s stop and remember what took place, Bush, Obama, McCain, and a whole $hit load of other politicians jumped on board proclaiming if we didn’t pass this bailout IMMEDIATELY the US would collapse. Let us also remember that the bailout was passed nearly unanimously and while considering that realize that absolute power was given to Paulson to control every element of the bailout with absolutely no oversight or requirements whatsoever. To persecute Bush as the sole individual responsible isn’t fair in my opinion. If I had my way I would replace every single member of government because 90% of these idiots are so corrupt it’s nauseating.
Ryan Kazinecs last blog post..Is Job Security Becoming More Significant Than Compensation and Benefits?
January 13th, 2009 at 7:44 am
Ryan, we used to live in DC so I have seen the corruption first-hand. I think if people really knew how much money people make in DC and what they do to make it their whole perception would change. The entire city needs an overhaul.
January 13th, 2009 at 8:27 am
Okay, I didn’t even read this post because of the two MAJOR grammatical errors in the title and in the first sentence (first, use of perfect-helper verb without past participle, i.e. it should be “has…gone” instead of “has…went,” and second, double negative – a much more elementary no-no, although both mistakes are very basic and visible). I know I am not alone, so until you learn to use proper grammar you are going to continue to lose readers.
And the subject of this article *is* something I am interested in – I just don’t want to have to struggle to read it.
Good day to you, sir.
January 13th, 2009 at 8:46 am
Arnold Kling, over at “EconLog”:http://econlog.econlib.org/, did a little calculation of the average amount of money that each bureaucrat will be responsible for disposing of under the current stimulus plan; he came up with a value of $1.5 billion. Can anyone imagine a responsible way of personally disposing of that much cash within a year? Two years? Is it really plausible that any administration could effectively manage the spending of such massive amounts of money? Especially since Obama is already talking about getting rid of a lot of the regular requirements of multiple-bidding to “accelerate” the pace of stimulus — I think they mentioned something about letting local democratic processes act as checks and balances. Great. Get ready for $400 billion in societal gain studies on $6 trillion in future contracts.
At least the original bailout was a purchase of something (shares, properties, etc.) that could be sold for some value (however low) — I don’t mean to belittle the waste and horror of having one man manage it entirely. But this new plan is just spending, without discretion, and with no control whatsoever, on nothing of any value. If anyone has any doubts as to this, please spend some time trying to manage a government contract to completion — it’s hilariously impossible.
January 13th, 2009 at 9:32 am
Scott,
Thanks for pointing out my grammatical errors. Hopefully, all the errors are fixed, but if not let me know (as you read the entire post).
January 13th, 2009 at 1:02 pm
Crystal and I stayed at a Bed and Breakfast in DC on a vacation last year. To sum things up; the only way I’ll be going back there is if I become president. On that same vacation we spent some time in Buffalo and New York City and loved every minute we spent there. I could write a novel on why i absolutely despised that city but instead I’ll let a picture speak a thousand words for me.
http://www.geocities.com/bigkazzyry25/dctrafficsign.jpg
Ryan Kazinecs last blog post..Is Job Security Becoming More Significant Than Compensation and Benefits?
January 13th, 2009 at 1:17 pm
Scott,
I just had a horrible flash back of my English teacher back in High School. Look buddy, if you want to grade someones paper and throw red ink all over the place I suggest you get a job as a teacher. Until then, take your ridiculous writing standards somewhere else. It takes me at least four revisions before my posts are ready to be published but I’m not writing a post on a daily basis like Tom. This is a web blog, not the New York Times. How hard would it have been to just go about your day without insulting someone’s writing?
Fine Print: My personal opinion that Scott needs to lighten the hell up does not reflect the opinion of this website or it’s owners.
Ryan Kazinecs last blog post..Is Job Security Becoming More Significant Than Compensation and Benefits?
January 13th, 2009 at 10:39 pm
What a picture! If you don’t know how to get from point A to B using one-way streets then DC isn’t a good place to be.
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