November 19, 2008

Paulson resists Democrats' call To Rescue Homeowners

This report in the LA Times angers me. We can argue all day long who is at fault for the economic issues. We can point fingers and talk about irresponsible spending on the part of business and consumers and suggest that they reap the rewards of their actions.

In theory I agree with that. It is important for people to take responsibility for their actions. However there comes a point at which we have to help people. And it bothers me that will loan businesses untold amounts of money to help save them.

It infuriates me to think of how much help the automakers receive and we can't do a freaking thing to help out the common man. If the Big 3 weren't so big, if they weren't tied in to so many jobs I'd say to let them fail. Let them reap the rewards of not working harder and smarter. But that can't happen right now.

Treasury Secretary Henry M. Paulson told unhappy congressional Democrats on Tuesday that, barring a new catastrophe, the Bush administration intended to stand pat on its existing effort to stabilize financial markets -- and leave the next stage of economic recovery to the new administration.

Having committed about half of the existing $700-billion rescue fund to ease Wall Street's credit crunch, Paulson said he had no plans to spend the rest, even on the root cause of the crisis -- soaring mortgage foreclosures.

"The prudent course, at this time, is to conserve the remaining funds available from the [rescue program], providing flexibility for this and the next administration," Paulson told frustrated lawmakers during a contentious hearing before the House Financial Services Committee.

During Paulson's testimony, committee members, at times raising their voices, complained that the administration was willing to spend money on big banks and insurers but not on ordinary Americans. "

I hope that you understand the pain and the suffering of so many homeowners in this country that are losing their homes," said Rep. Nydia M. Velazquez (D-N.Y.).

2 comments:

The Misanthrope said...

I agree we cannot let the auto makers fail only because of the jobs attached to it, but I was glad that the senators called the auto CEOs on the fact that they all arrived in DC in their private jets looking for handouts. Make them sweat.

Homeowners need a break too. It's very tempting when your bank is telling you to borrow this amount because prices are going to go up. Especially young couples starting out this was akin to a bait and switch or some carpetbagger pretending to care

Jack said...

I wish that the Senate would have given those guys more grief. Their audacity is just shameful.