The comedy show in the District of Columbia gets funnier every day. Yesterday, Treasury Secretary Paulson announced that he won’t use the $700 BILLION dollars to buy troubled assets after all. Instead, he will use all of the money to "invest" in companies. Paulson admitted that he knew that buying troubled assets wasn’t the right solution to the problem while the bill was being debated in Congress.
Regardless, this is going to cost us a lot more than $700 billion. According to Forbes.com, the U.S. government has already incurred a whopping $5 TRILLION of obligations in the various schemes by the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation to shore up the financial system.
The list of companies standing in line to get a taxpayer “investment” is getting longer every day. AIG and GE Capital are going after their second round of hand outs. American Express and the grossly mismanaged U.S. Auto Industry are next.
Guess what is going to happen to the corporate executives who got us into the mess? Bloomberg reports that they are going to get big, fat Christmas bonuses. For example, Goldman Sachs has set aside $6.8 billion for bonuses while Morgan Stanley has allocated $6.4 billion.
To top it off, the Democrats are planning some nice surprises for us next year. Congress is holding hearings on confiscating our 401Ks and turning them over to the Social Security Administration. Of course, many of us are going to get stuck with a big, fat tax increase as well.
It just gets better all of the time…