Will North Carolina Senators vote to protect North Carolinians?

The economic meltdown is happening right before our eyes. The free market, a market in which price is determined by the free, unregulated interchange of supply and demand, where the best business/product will rise to the top as the people’s choice has crashed and burned. Under this theory the most efficient market is unregulated with NO government oversight. Look where that has gotten us. Mr. And Mrs. America, our children, their children and their children are being asked to bail these failing markets out and if the Bush administration gets their way, it will be done the free market way.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Saturday in the New York Times, Paul Krugman asks how is this going to help?

I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.

As I posted earlier today, it seems all too likely that a “fair price” for mortgage-related assets will still leave much of the financial sector in trouble. And there’s nothing at all in the draft that says what happens next; although I do notice that there’s nothing in the plan requiring Treasury to pay a fair market price. So is the plan to pay premium prices to the most troubled institutions? Or is the hope that restoring liquidity will magically make the problem go away?

The blog Naked Capitalism tells us “Why You Should Hate the Treasury Bailout Proposal”…..

This [Section 8 – Review] puts the Treasury's actions beyond the rule of law. This is a financial coup d'etat, with the only limitation the $700 billion balance sheet figure. The measure already gives the Treasury the authority not simply to buy dud mortgage paper but other assets as it deems fit. There is no accountability beyond a report (contents undefined) to Congress three months into the program and semiannually thereafter. The Treasury could via incompetence or venality grossly overpay for assets and advisory services, and fail to exclude consultants with conflicts of interest, and there would be no recourse. Given the truly appalling track record of this Administration in its outsourcing, this is not an idle worry.

But far worse is the precedent it sets. This Administration has worked hard to escape any constraints on its actions, not to pursue noble causes, but to curtail civil liberties: Guantanamo, rendition, torture, warrantless wiretaps. It has used the threat of unseen terrorists and a seemingly perpetual war on radical Muslim to justify gutting the Constitution. The Supreme Court, which has been supine on many fronts, has finally started to push back, but would it challenge a bill that sweeps aside judicial review? Informed readers are encouraged to speak up.

Contacting our North Carolina Senators, the very senior Elizabeth Dole and Richard Burr would seem the right thing to do, that is if we really had a chance of either of them voting against the Bush administration. We all know ‘that dog won’t hunt’! It will be interesting watching the actions of these two Republicans to see exactly whose interest they protect.

Comments