I fear it is just the beginning. The AP reports:
The bailout is now the hottest lobbying game in town.
Insurers, automakers and American subsidiaries of foreign banks all
want the Treasury Department to cut them a piece of the largest
government rescue in U.S. history.The betting is that many with their hands out will be successful,
especially with financial markets in a stomach-churning dive and
predictions the economy is about to tumble into a deep recession.These groups argue that the credit squeeze is so severe and the risks
to the economy so dire that their industries need financial support as
well.The Treasury is considering requests from a variety of industries, but
has not decided whether to expand the program, officials said Saturday.
Want to bet on what they finally decide?
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That the Treasury Department is even entitled to decide is mind boggling. Suddenly, Bushniks may exchange a trillion bucks worth of taxpayer obligations for any promissory note of dubious value they choose, and they'll do it all in the final weeks of their waning power. Are we insane or what?
Only a few weeks ago, we were discussing securities backing subprime mortgages encouraged by the welfare state through the GSEs, almost exclusively, but that was obviously only a diversion.
A button pressed, a motor turns, the paper flies through, and magically, wealth issues from the machine, a Rumpelstiltskin spinning gold from straw.
I tell ya, it's a magnificent reality faking machine.
"This note is legal tender for all debts, public and private."
Do you see a gun anywhere in that note? It's implied by the fourth word.
They're lining up at thr trough. Disgraceful, but not surprising.
Russell,
Please, take note that this rent seeking is going on also in Europe–I think at the end it will be much worse here in Europe than there. Once the floodgates have been opened, the US doom-saying economists (the ones that have been playing a supporting role in the crisis with the expectation of bringing political change) will have a hard time stopping it.
Martin isn't this all funded by Congress? Sure it's crazy that the "bushniks" are doing this at all, but unless Congress is comprised of bushniks, isn't it a larger group than just the bushniks? Does Congress consist of bushniks? Bushniks?