I do not readily admit (and since my blog has a readership of 2, this doesn't count) to being an avid fan of C-SPAN. Generally taking a loathsome approach to 99% of T.V., CSPAN is one of those channels where I can simultaneously avoid commercials and dodge the media's analysis (forming my own) of the hot potato in the political world. CSPAN is the Sesame Street to MSNBC and Fox's telenovela styled drama.
Today's letter is: B. B is for Bailout.
1. TARP in the Financial Services Cmte.
The story in the U.S. Congress today was especially nail-biting, especially for a lame-duck session.
Congresswoman Maxine Waters, among others, tore into Neel Kashkari - the Indian whizkid up at treasury managing TARP. Essentially lawmakers grilled him over why the Treasury has spent half of the $700 billion on what Robert Reich calls the worst kind of trickle down economics.
At one point I thought Representative Manzullo would jump out of his seat and give Kashkari one of those tough-guy chest pokes. Instead: he called for the Assistant Secretary's resigation. To quote the Honorable Manzullo (R-IL): "You sit here in charge of all this money, and you can't say if a $3 million bonus is excessive. If you cant take a position on a $3 million bonus in a failed company who is owned by the government ... on the basis of your answer I think you should step aside."
He charged that Kashkari (whose parents are from Kashmir) simply could not identify with his constituency (with a media income of 41K/annum and an unemployment rate of 11%). While this may have gone too far, you wouldn't have known it from Kashkari: he was the icon of Teflon Don. Perhaps he had to keep reminding himself where he was: the halls of a congress that passed a 400 page bailout bill complete with goodies and pickings and then expected proper oversight and 100% answers to what are undoubtedly complex. Perhaps Treasury should have appointed a comedian instead of a former NASA engineer.
Notwithstanding the house shows of frothing and anger: they got little from Kashkari who maintained that the bailout has made significant process despite having to make continuous changes based on "events on the ground." Another sign this TARP has been turned into a hot-air ballon and is now soaring above the rest of us who are mostly stuck with our bad assets and credit.
2. The Auto Industry may get their check with strings attached
After reading the full text (nearing 40 pages) of the bill, approved by some playing around with the House rules (of which I didn't fully understand), I felt not the least bit sorry for the thick strings and demands that lawmakers impose for the 14 billion "bridge loan" (to know where?) they are offering the auto manufacturers.
I do however feel that the bill fell short of what could have been specifics - especially with their wording on seeing progress toward "environmentally sustainability." Yesterday's testimony by Public Citizen President Joan Claybrook made it ever clear that if fuel economy targets and standards are not in the law, but are simply promises: they will not be adhered to. Unfortunately not one target was put in the bill. While this may not have been the venue for such an action, one thing is clear: congress had flights to catch back home. Rather than hash out the details for specific targets and incentives, they decided to defer this to a designated official by the President who will watch over the auto companies who receive loan monies.
While I am no expert, and therefore withhold comments on what I think of the to-be "President's designee" (Car Czar), if the bill passes the Senate, all I can hope for is someone who will not sit on their hands and let the auto companies take the money and drive off. While this seems unlikely to happen (as there are several stipulations in the bill to prevent this : I worry that we could soon be choking on the noxious combustion fumes of an auto industry that can't get its act together even with oversight. When this happens they'll be back (maybe in a new Escalade Hybrid) with, yet again, cap in hand.
I ponder who will be the next to line up as apparently the Christmas holiday has decided the needy are yesterday's zeitgeist and now 'tis the season to be charitable to failed big business. Congress may just give the big three a nice Christmas gift in their corporate stocking. They did it to save hundreds of thousands of jobs, so I hope it works. Lets hope the manufacturers don't return taxpayer money with coal.
Today's letter is: B. B is for Bailout.
1. TARP in the Financial Services Cmte.
The story in the U.S. Congress today was especially nail-biting, especially for a lame-duck session.
Congresswoman Maxine Waters, among others, tore into Neel Kashkari - the Indian whizkid up at treasury managing TARP. Essentially lawmakers grilled him over why the Treasury has spent half of the $700 billion on what Robert Reich calls the worst kind of trickle down economics.
At one point I thought Representative Manzullo would jump out of his seat and give Kashkari one of those tough-guy chest pokes. Instead: he called for the Assistant Secretary's resigation. To quote the Honorable Manzullo (R-IL): "You sit here in charge of all this money, and you can't say if a $3 million bonus is excessive. If you cant take a position on a $3 million bonus in a failed company who is owned by the government ... on the basis of your answer I think you should step aside."
He charged that Kashkari (whose parents are from Kashmir) simply could not identify with his constituency (with a media income of 41K/annum and an unemployment rate of 11%). While this may have gone too far, you wouldn't have known it from Kashkari: he was the icon of Teflon Don. Perhaps he had to keep reminding himself where he was: the halls of a congress that passed a 400 page bailout bill complete with goodies and pickings and then expected proper oversight and 100% answers to what are undoubtedly complex. Perhaps Treasury should have appointed a comedian instead of a former NASA engineer.
Notwithstanding the house shows of frothing and anger: they got little from Kashkari who maintained that the bailout has made significant process despite having to make continuous changes based on "events on the ground." Another sign this TARP has been turned into a hot-air ballon and is now soaring above the rest of us who are mostly stuck with our bad assets and credit.
2. The Auto Industry may get their check with strings attached
After reading the full text (nearing 40 pages) of the bill, approved by some playing around with the House rules (of which I didn't fully understand), I felt not the least bit sorry for the thick strings and demands that lawmakers impose for the 14 billion "bridge loan" (to know where?) they are offering the auto manufacturers.
I do however feel that the bill fell short of what could have been specifics - especially with their wording on seeing progress toward "environmentally sustainability." Yesterday's testimony by Public Citizen President Joan Claybrook made it ever clear that if fuel economy targets and standards are not in the law, but are simply promises: they will not be adhered to. Unfortunately not one target was put in the bill. While this may not have been the venue for such an action, one thing is clear: congress had flights to catch back home. Rather than hash out the details for specific targets and incentives, they decided to defer this to a designated official by the President who will watch over the auto companies who receive loan monies.
While I am no expert, and therefore withhold comments on what I think of the to-be "President's designee" (Car Czar), if the bill passes the Senate, all I can hope for is someone who will not sit on their hands and let the auto companies take the money and drive off. While this seems unlikely to happen (as there are several stipulations in the bill to prevent this : I worry that we could soon be choking on the noxious combustion fumes of an auto industry that can't get its act together even with oversight. When this happens they'll be back (maybe in a new Escalade Hybrid) with, yet again, cap in hand.
I ponder who will be the next to line up as apparently the Christmas holiday has decided the needy are yesterday's zeitgeist and now 'tis the season to be charitable to failed big business. Congress may just give the big three a nice Christmas gift in their corporate stocking. They did it to save hundreds of thousands of jobs, so I hope it works. Lets hope the manufacturers don't return taxpayer money with coal.
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