BernieHund: The Political Watchdog

Sheila Bair, Chairwoman of the FDIC, may be the only appointee of the present administration that gives a rat’s ass about anyone who doesn’t suck from the Wall Street teat. We have all seen Henry Paulson hand out early Christmas gifts to the bankers on Wall Street… and insurance companies. But, it has been Sheila Bair who has had the common sense and the courage to tackle the problem that faces middle-America. Of course, it seems that there is little hope for those on the poverty level. They are the truly forgotten.

But, let’s face reality, just spreading a little help to the masses is enough to get Sheila Bair the recognition she deserves. And, today in Congress the clash of the titans emerged, with Bernanke in the middle.

Treasury Secretary Henry Paulson and Federal Deposit Insurance Corp. Chairwoman Sheila Bair clashed in public over whether to use some of the $700 billion package to aid homeowners at risk of foreclosure. Bair on Friday unveiled a $24.4 billion proposal aimed at modifying 1.5 million mortgages to avoid foreclosures, however Paulson said he would not pay for it as part of the $700 billion bank Troubled Asset Relief Plan plan.

Henry Paulson’s position is clearly the position of the administration. Give to the rich and powerful and they will throw a few breadcrumbs to the masses, the trickle down theory if you will. In other words, if you are not a banker or insurance company, screw you. Paulson is guarding the $700 Billion entrusted to him as if the money is coming out of his pocket. No money for the Big 3 automakers! No money for homeowners facing foreclosure! Money for bankers only!

Sheila Bair’s position clearly challenges that of Paulson. Today she explained her plan. It is a grass roots plan that puts confidence in the masses of people who are the end users of the economy as well as the workers who keep the economy going.

“The root cause of the current economic crisis [is] the failure to deal effectively with unaffordable loans and unnecessary foreclosures,” Bair said to lawmakers at a House Financial Services Committee TARP oversight hearing.

All we can say is, “Amen!” At long last someone gets it. The truth is that Paulson does not want to get it. It can be explained every way possible and Paulson will refuse to listen. He just doesn’t get the idea that if we can stay in our homes through renegotiated affordable mortgages we will be able to go to work, earn an income and spend some money. If we spend money, all the businesses can stay in business. Sure, that is an over simplification. But, the truth is that it doesn’t matter how much money you give to the banks, the people facing foreclosure are still in dire straits and don’t have money to spend.

Bair reiterated her understanding of what Congress had agreed to when they voted to give Paulson the $700 Billion.

She noted that the rescue package approved by Congress “specifically provides” Paulson with the power to use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.

Paulson’s position continues to be SCREW YOU! to Congress, to FDIC Chairwoman Sheila Bair, and to America. Perhaps, this is one of those instances when America needs to send emails to Congress saying only, “I told you so.”

Paulson refused to budge.

Paulson said he is sticking with his plan to use the first half of the allocated government capital, $350 billion, to buy significant minority stakes in large, mid-sized and small financial institutions. This approach is starkly different from Paulson’s initial strategy in September to use the capital to buy illiquid mortgage backed securities. Paulson said he changed the approach as market realities changed with it.
“Although we are not planning to initiate another capital program beyond those already announced, an emphasis on capital seems to us to be the better strategy going forward,” Paulson told lawmakers. “Congress passed legislation to deal with financial instability, and that is what we are doing.”

Yet, what we have seen is that Sheila Bair has put forth a plan that is helping keep homeowners in their homes. Paulson has continued to feed the Bull [sh*t] on Wall Street, not even offering to look at the 8000 community banks who have been totally ignored.

It does not matter whether you are a Republican or Democrat, Independent or Idiot, it does not take a mental giant to see that the only corporations who have been helped are those with whom Paulson has been in bed for his adult professional life. Paulson’s mental masturbation and stammering bullsh*t before Congress is an example of a man, much like the Idiot in the White House, who cannot admit that he doesn’t have the answer and maybe… just maybe he is wrong. Hence we are seeing Plan A fade into Plan B and we now await Plan C. While Paulson is trying to decide on a workable plan, it seems that FDIC Chairwoman Sheila Bair has undertaken a plan that is working for those who have benefited from it so far, mostly Washington Mutual mortgagees that she has the power to affect. Six weeks into the Paulson Plan we have seen little help from the trickle. A few weeks into Bair’s initiative we are seeing people who are being allowed to stay in their homes.

It has become increasingly obvious to those of us who live in the real world that Congress first of all should have listened to the people. We did not trust Paulson in the beginning. Hell! We are feeling like Barack Obama when he spoke out against the War in Iraq when Congress was buying into the Bush*t. It almost makes one wonder if there is a stupid hormone in the Congressional water supply.

With no oversight in place, no reports coming back to Congress, it is time to demand that Congress withhold any more funds until Paulson-Bernanke-Bushit is out of Washington.

To Congress: Have the guts to do the right thing. To quote Nancy Reagan, “Just Say NO!” to any further funds for the Paulson Pals.