Michelle Malkin » Senators to Paulson: You lied, TARP died

Senators to Paulson: You lied, TARP died

By Michelle Malkin • November 13, 2008 03:41 PM

Three GOP Senators have sent Treasury Secretary Hank “Never mind” Paulson a “joint letter of concern.” I’ll have more on this abominable subject in my syndicated column tomorrow.

Joint Letter of Concern to Secretary Paulson After His Announcement to the Change Intent of the Troubled Asset Relief Program

November 13, 2008

Dear Secretary Paulson:

We are writing to express our deep concern over your announcement this morning that the Department of the Treasury will halt all plans to purchase trouble mortgage assets through the Troubled Asset Relief Program (TARP). We are concerned that the program has been fundamentally changed from its original intent and worry that continued changes may erode the structures of accountability put in to protect taxpayers.

When legislation authorizing the TARP was first proposed to members of Congress in mid-September, its primary component was a program to allow the Secretary of the Treasury to purchase “toxic” mortgage assets from financial institutions. The primary reason for this course of action, we were told, was to assist the market in discovering the price of these assets and to return liquidity to the financial markets.

At a hearing of the Senate Banking Committee on September 23, 2008, you made the following comments on the urgent necessity of a troubled asset purchase program:

We have proposed a program to remove troubled assets from the system. This troubled asset relief program has to be properly designed for immediate implementation and be sufficiently large to have maximum impact and restore market confidence. It must also protect the taxpayer to the maximum extent possible, and include provisions that ensure transparency and oversight while also ensuring the program can be implemented quickly and run effectively.

This troubled asset purchase program on its own is the single most effective thing we can do to help homeowners, the American people and stimulate our economy.

Although the legislation was passed on October 3, the program was never implemented and now has been officially abandoned in favor of alternative plans after little more than a month. Such a rapid reversal raises questions about the TARP’s original design as well as the propriety of future plans.

Congress never intended for the TARP to be a blank check that could be spent with unlimited discretion. To ensure proper boundaries are in place to protect the taxpayer, we hope and expect that congressional approval will be sought by the administration before further changes are made.

Sincerely,

U.S. Senator Tom Coburn, M.D., U.S. Senator Richard Burr, U.S. Senator David Vitter

Posted in: Subprime crisis

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#544008

On November 13th, 2008 at 8:46 pm, WarEagle82 said:

You make an interesting point about Bush screwing up Congress. I don’t think he will do so intentionally but it could happen.

Suppose Bush does NOT pardon everyone in his administration, including himself, before he leaves office. The Dems are so afflicted with BDS that they will go after everyone associated with his administration with the ultimate goal of Cheney and Bush.

Bush could tie up the nutroots in Congress for years with legal challenges and stonewalling.

Ironically, Obama may have to assist Bush because if the precedence of investigating an administration after they leave office is set, every future president will be heavily impacted, if not crippled1 This could easily become to be seen as threat to the separation of powers!

Wouldn’t it be totally ironic if Bush stops Obama from implementing his socialist dreams because Congress continues to be obsessed with BDS for the next two years? Poetic justice!

On November 13th, 2008 at 8:38 pm, beenthere said:

Second funniest line goes to “Bush should fire Paulson.” Bush is not going fire anybody or do anything. He has done far too much as it is. Bush has gone bye-bye and I don’t mean physically. The only service he can perform for his country now is to help so screw up the congressional investigations of his administration that the democrats may not be able to do as much damage as they hope in 2009.
#544020

On November 13th, 2008 at 9:03 pm, Freddy said:

I bet McCain is real glad he suspended his campaign to get to Washington and find a wonderfull, somewhat bi-partisan, agreement on this bailout!

It really was for the ‘good of the country’ that John did it!

It was equally great to see that Obama was the cool head that kept everyone firmly focused on ‘getting this important rescue plan done’!

Too bad that neither John or Obama or Paulson or anyone else had a clue what they were doing.
#544021

On November 13th, 2008 at 9:03 pm, RabbidSquirrel said:

On November 13th, 2008 at 4:21 pm, cabrerski said:

OK, that wasnt Aqua Teen Hunger Force, but I cant remember what it was…
#544022

On November 13th, 2008 at 9:06 pm, FamilyMan said:

It’s very simple folks. The feds. will hyper-inflate the currency and all the debt will be gone. The bad part is the buying power of your savings will be gone.

THANK YOU BARNEY FRANK

GGEEEEEEEEESS!!!!!!!
#544027

On November 13th, 2008 at 9:20 pm, Misscheryl said:

Peejz said:

In a nutshell, yes! Not filing taxes is against the law and the IRS will come after you..as you are working your case through the courts, they will get their money from you one way or another…In the end, the IRS, and not you will prevail. I understand why you said what you said, and yes, it seems like it would only be fair, but the IRS is not a government entity that you want to try and prove a point with!

Understood, but I meant collectively. If a major revolt resulted in thousands, maybe tens of thousands refusing to file their tax return.
#544032

On November 13th, 2008 at 9:28 pm, Peejz said:

Misscheryl-

They would hire more people to collect or they would use the current staff without hiring anyone and it would be an even bigger nightmare for the taxpayer(?)/revolter…

In theory, great plan, I hear you on it, but do not try that as you would be the one punished..Just remember, your name is Miss Cheryl, not Peggy..Peggy The Moocher
#544042

On November 13th, 2008 at 9:48 pm, cabrerski said:

Rabbid,

That was the original Saturday Night Live (when they were funny).
#544069

On November 13th, 2008 at 10:42 pm, America1st said:

Not That I am against holding Paulson accountable, but these dummies voted for the crap sandwhich KNOWING HE WOULD HAVE UNREVIEWABLE DISCRETION.

What did they think was going to happen? Is this really a surprise to them? If so we are in a lot more trouble than we realize because WE sure saw this coming.
#544138

On November 14th, 2008 at 12:34 am, Joy said:

Well, no surprises that Paulson isn’t going to do what was a dire emergency!!! I’m with America1st in that WE the people knew what apparently our illustrious Congresscritters couldn’t figure out.

But it seems to me that we should be glad he’s not buying up a bunch of toxic mortgages… is that at least one good thing? kinda like a piece of candy hidden in the Crap Sandwich?

Ewww… never mind.
#544163

On November 14th, 2008 at 1:41 am, fred5676 said:

Congress: “Oh, waiter, I ordered a crap sandwich, and there’s a problem. It tastes like crap!”
#544193

On November 14th, 2008 at 4:42 am, graysonret said:

I see another FDR (Obama) in the White House, replacing another Hoover (Bush) and an economy in recession. The new President and another democratic congress, once again, are going to make the same mistakes that were made in the 30s. History repeats itself. Bailouts and more regulations will have the same effect now, as back then…a depression. Investments will go down as people refuse to put their money in something that is changing daily, with the government scrambling to control things. Companies will not hire or, worse, let workers go, to stay afloat. Politicians, refusing to look at the mistakes of the past, see only their own security. Regulations hurt economies, not improve them. Economics 101.
#544226

On November 14th, 2008 at 6:55 am, johnsteele said:

On November 13th, 2008 at 4:28 pm, thetoysurgeon said:
Let’s start building the guillotines now. We need a leader (non-gov) of the people who will show the petitions signed by the people of America to unseat these bastards, a leader who will take it to these scumbags, a leader to organize us. I will follow if someone comes forth. I don’t mean “that one’ either.

On November 4th the people of this country spoke and turned over the reins of government to the very people who created the mess in the first place. Th inmates are now running the asylum.
#544456

On November 14th, 2008 at 10:42 am, Kwill said:

Want to see something amusing? Get on Google News and simply enter “Paulson”. Then just read allll the headlines & clips.
#544761

On November 14th, 2008 at 1:05 pm, By Choice said:

Why–she askes with tongue in cheek–is everyone getting so excited about this. Prefect Paulson was given a blank check to do what ever he needed to get the economy right–so now he has another plan-he’ll probably have another one or two before the Obamessiah takes over and really fixes everything.

sarc off/