Inhofe: Cancel the 'blank check'

[Rajiv]

Inhofe: Cancel the 'blank check'

He criticizes Henry Paulson for changing the $700 billion bailout plan.


WASHINGTON — U.S. Sen. Jim Inhofe said Saturday that Congress was not told the truth about the bailout of the nation's financial system and should take back what is left of the $700 billion "blank check'' it gave the Bush administration.

"It is just outrageous that the American people don't know that Congress doesn't know how much money he (Treasury Secretary Henry Paulson) has given away to anyone,'' the Oklahoma Republican told the Tulsa World.

"It could be to his friends. It could be to anybody else. We don't know. There is no way of knowing.''

Inhofe's comments, unusually pointed even for a senator known for being blunt, come on the heels of Paulson's shift in how he thinks the bailout funds should be spent.

Last week the Treasury secretary announced he was abandoning his plan to free up the nation's credit system by buying up toxic assets from troubled financial institutions. Instead, Paulson wants to take a more direct action on the consumer credit front.

"He was able to get this authority from Congress predicated on what he was going to do, and then he didn't do it,'' Inhofe said.

"So, that's enough reason right there.''

Inhofe recalled earlier comments opposing Paulson's plan because the administration's point man did not have answers for a number of questions. He also recalled questioning the rush to get the bailout passed.

"I have learned a long time ago. When they come up and say this has to be done and has to be done immediately, there is no other way of doing it, you have to sit back and take a deep breath and nine times out of 10 they are not telling the truth,'' he said.

"And this is one of those nine times.''
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[due_indigence]

Re: Inhofe: Cancel the 'blank check'

First of all I think what we've been seeing day to day speaks more of desperation and ineptitude than it does a pre-defined conspiratorial game plan. Watching Ben and Hank over the last six months, who but the most paranoid could argue otherwise? But then, I've never been a grassy knoll sort of guy. What does happen is that, gradually the parties determine their own best interests under chaotic circumstances and act/adjust accordingly.

Paulson has decided he has no intention of re-starting the mortgage market. He has set up a financing conduit/laundromat between Treasury and a small group of banks. The rest of the country will go to hell in a handbasket (including most banks) and the plutocracy will cherry-pick at distressed prices. By allowing the country at large to fail, an unprecedented buying opportunity exists for those entities with papal dispensation (or in this case public compensation). The plan seems to be congealing. The goal is widespread bankruptcy. They want us to fail. The US government has never more explicitly appeared as the people's arch foe than as it does today.

[metalman]

Re: Inhofe: Cancel the 'blank check'

First of all I think what we've been seeing day to day speaks more of desperation and ineptitude than it does a pre-defined conspiratorial game plan. Watching Ben and Hank over the last six months, who but the most paranoid could argue otherwise? But then, I've never been a grassy knoll sort of guy. What does happen is that, gradually the parties determine their own best interests under chaotic circumstances and act/adjust accordingly.

Paulson has decided he has no intention of re-starting the mortgage market. He has set up a financing conduit/laundromat between Treasury and a small group of banks. The rest of the country will go to hell in a handbasket (including most banks) and the plutocracy will cherry-pick at distressed prices. By allowing the country at large to fail, an unprecedented buying opportunity exists for those entities with papal dispensation (or in this case public compensation). The plan seems to be congealing. The goal is widespread bankruptcy. They want us to fail. The US government has never more explicitly appeared as the people's arch foe than as it does today.

for example...

U.S. rejects proposal to forgive credit card debt

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40% of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29.

[blazespinnaker]

Re: Inhofe: Cancel the 'blank check'

for example...

U.S. rejects proposal to forgive credit card debt

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40% of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29.

Good lord!

That's just CRAZY TALK. Forgive CC debt? I hope these people would get a serious hit to the credit ratings.

I personally would go out and buy a gun if they did that. And it wouldn't be for self defense!

[we_are_toast]

Re: Inhofe: Cancel the 'blank check'

for example...

U.S. rejects proposal to forgive credit card debt

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40% of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29.

Yesterday on NPR there was a story about a guy who I think worked in the auto industry and had just lost his job. He was applying for food stamps. As he walked out of his BRAND NEW FORD PICKUP they interviewed him.

A friend of mine, who is very frugal, was telling me about his brother who works in the recycling industry. He bought a new boat last summer, and last week they laid off 80% of the workforce and cut his hours in half. My friend's daughter totaled her car a few weeks ago and bought a 2007 Honda. She is not married and doesn't have a job.

There are simply a whole lot of Americans in which accumulating debt is a typical way of life. If you forgive their CC debt, they'll find a way to buy something else on credit.

This problem has 2 sides, the borrower who is incapable of managing money, and the unethical lender who makes high risk loans knowing he can pass on default costs to good borrowers, or can squeeze the bad borrower so hard as to ruin the rest of their life.

Tough problem that needs to be solved.

[tsetsefly]

Re: Inhofe: Cancel the 'blank check'

Yesterday on NPR there was a story about a guy who I think worked in the auto industry and had just lost his job. He was applying for food stamps. As he walked out of his BRAND NEW FORD PICKUP they interviewed him.

A friend of mine, who is very frugal, was telling me about his brother who works in the recycling industry. He bought a new boat last summer, and last week they laid off 80% of the workforce and cut his hours in half. My friend's daughter totaled her car a few weeks ago and bought a 2007 Honda. She is not married and doesn't have a job.

There are simply a whole lot of Americans in which accumulating debt is a typical way of life. If you forgive their CC debt, they'll find a way to buy something else on credit.

This problem has 2 sides, the borrower who is incapable of managing money, and the unethical lender who makes high risk loans knowing he can pass on default costs to good borrowers, or can squeeze the bad borrower so hard as to ruin the rest of their life.

Tough problem that needs to be solved.

The good borrowers will pay anyway because the whole economy will suffer from the over lending/borrowing others did, its enough of a price to pay. I dont think good borrowers should now be forced to bailout companies and individuals...

[Slimprofits]

Re: Inhofe: Cancel the 'blank check'

There are simply a whole lot of Americans in which accumulating debt is a typical way of life. If you forgive their CC debt, they'll find a way to buy something else on credit.

Yes and yes, but aren't the events happening now changing the way the game is played? re: securitization, deleveraging, possible more regulation Most Americans won't have a choice about just going into more debt anymore.