Another Blank Check

So the Wall Street bailout details are coming out. $700 @%&*ing Billion to correct something that could have been prevented if our government worked properly. All we keep hearing is that Congress needs to move fast (probably true) and should keep the details to a minimum to allow the Treasury Secretary to do his magic. All I have to say is AGAIN?

We've written blank checks for the wars in Afghanistan and Iraq. We've written blank checks for Katrina Aid. We've written blank checks to cover pork and pet projects. The last thing we need is yet another blank check with nothing in return.

The Majority in Congress is asking for provisions to ensure that people keep their homes and to limit executive pay. Great, trying to score more political points for the base. But what's in it for the taxpayer? I heard one idea that I though was great. In exchange for saving companies we should 1) make it uncomfortable by negotiating favorable terms for the taxpayer. If that means 30 cents on the dollar then so be it. The other is that we should ask for warrants. What are warrants? In essence, they company would be giving the new RTC agency stock options.

While this would wreak of Socialism it is a fair exchange. The taxpayers are assuming the risk. The company is getting out of bad decisions and their corporate value is going to take off without that weight on their balance sheets holding them back. Why shouldn't the party taking the risk get something out of it? We get warrants, convert it to stock and sell it on the market at a profit.

The other thing I am not hearing is any kind of war bond type of initiative. Politicians are looking to end this as quickly as possible and report home for campaigning. They don't want to sell patriotism and duty to have as much of the bonds being in the hands of Americans rather than in the hands of the Chinese and Saudis. They seem to be fine putting the US at their mercy and being less secure on another level. They are thinking in the short term as Westerners typically do. The Chinese don't view the world the same way. They don't care if they take us down next week or next century the bottom line is winning. So if it ever came down to a confrontation between out countries the Chinese are looking for a way to win without firing a shot. This gives them more ammo. That's another story for another time. There should be Bailout Bonds floated and they should have the warrants behind them as more of a reason for Joe 6-pack to lay down $100 for some.

None of that will happen. All we're going to see is another foreign funded bail out of America and then the Government can go back to doing things the same way. Change, yeah I'll believe it when I see it.