Stephen Bové - Art, Technology, Right Action

Tuesday, September 23, 2008

Stop the Graft!


The current distressed asset repurchase being proposed by Treasury Secretary Paulson is an outrageous affront to all hard working fiscally conservative Americans --  a massive redistribution of value from the American people that benefits only a minority professional banker/financier class.

Any legislation empowering a "bailout" of distressed financial institutions at this time must prevent the following misuse of taxpayer dollars:

1) Banks, especially newly created bank-holding companies like Goldman Sachs & JP Morgan must be barred from borrowing funds at the Fed Discount Window and investing those funds in "distressed-assets" being sold by the Treasury after being purchased from failing institutions with taxpayer bailout funds. This kind of egregious round-tripping from Fed to Bank to Treasury must be prohibited.

2) Bail out funds paid to a bank or financial institution (such as Goldman, JPMorgan, etc.) for distressed assets must NEVER be used to subsequently buy similar (and especially not higher quality) distressed assets being sold by Treasury after purchase during a bailout. This sort of covert balance sheet swapping at taxpayer expense cannot be tolerated.

Call, email and write your Senators, Representatives and influential friends. Let them know that you are intolerant of the carefully veiled graft that has been proposed by Treasury Secretary Paulson.