The Treasury chief will gain sweeping, even unparalleled power

Posted by Kendall Harmon

Despite all the constraints Congress supposedly wrapped around him, Treasury Secretary Henry M. Paulson is about to become the most powerful mortgage financier of the modern era -- most likely of any era.

Buried beneath the 100-plus pages of detail that Paulson's financial rescue plan has picked up during its 10-day journey from a Bush administration wish list to a bipartisan congressional compromise is the striking fact that the Treasury secretary got almost everything he sought -- an eventual $700 billion and the authority to spend it largely as he sees fit.

Read it all.

Update: An article from the New York Times on the same theme is here.

Filed under: * Economics, PoliticsEconomyThe September 2008 Proposed Henry Paulson 700 Billion Bailout Package

7 Comments
Posted September 29, 2008 at 7:47 am [Printer Friendly] [Print w/ comments]



1. Kendall Harmon wrote:

As someone who is a strong believer in checks and balances, this makes me nervous.

September 29, 8:20 am | [comment link]
2. DonGander wrote:

Some things are simply not worth the having of prosperity.

700 Billion hastily spent is one of them.

Pro 17:1 ¶ Better [is] a dry morsel, and quietness therewith, than an house full of sacrifices [with] strife.

This brilliant idea of a bail-out, once started, will result in either constant political war or repression far into a troubled future.

Don

September 29, 8:28 am | [comment link]
3. APB wrote:

“As someone who is a strong believer in checks and balances, this makes me nervous. “

Way too many blank checks, and far too balances!

September 29, 8:56 am | [comment link]
4. Marion R. wrote:

A coherent flow of $700B back and forth between Washington and New York City for most of the next generation is going to have a deeply corrupting effect on all the people involved.

September 29, 9:12 am | [comment link]
5. Clueless wrote:

Do you realize that Congress has been placed under a parlimentary manuever known as “martial law” and will barely be allowed any time to review this bail out?

From itulip.com

http://www.republicmedia.tv/index.php?option=com_content&task=view&id=407&Itemid=1


The Blackmailing of a Nation… Written by Samuel Ettaro  
Monday, 29 September 2008

U.S House Under Martial Law - Confimed by C-Span

“Mr. Speaker I understand we are under Martial Law as declared by the speaker last night,” Rep. Burgess, (R-TX)

Original Post - D. H.Williams, Daily Newscaster

September 28, 2008- Rep. Michael Burgess (R-TX) reports from the floor of the House that the Republicans have been cut out of the process and called unpatriotic for not blindly supporting the fraudulent bailout. He says the only debate has been about what talking points to use on the American people. The most ominous revelation is when he claims the Speaker has declared martial law.

“I have been thrown out of more meetings in this capital in the last 24 hours than I ever thought possible, as a duly elected representative of 825,000 citizens of north Texas.” Said Congressman Burgess.

Burgess asks the Speaker of the House to post the bailout bill on the internet for at least 24 hours instead of passing the largest piece of legislation in US financial history in the “dark of night.”

The most frightening part of Rep. Burgess’ one-minute floor speech is when he says, “Mr. Speaker I understand we are under Martial Law as declared by the speaker last night.”

[end}


THE FOLLOWING INPUT WAS SENT SUBMITTED BY A SITE VISITOR IN RESPONSE TO THIS ARTICLE.  Regardless of the context in which facts lie, Martial Law declared on the American populace or Martial Law declared on Congress as a rule of procedure, they are our elected representatives and this is a very grave situation.

Here is the current “martial law” resolution applied through Sept. 29:
http://rules-republicans.house.gov/ShortTopics/Read.aspx?id=220

To report the martial law rule waiving a requirement of Clause 6(a) of Rule XIII with respect to consideration of any resolution reported from the Rules Committee, through the legislative day of September 29, 2008. It does not apply to any specific measure, but rather grants blanket authority.


Motion offered by: Summary of Motion Vote Tally
Dreier To specify that the provisions of the rule only apply to a bill addressing the current financial crisis or a bill relating to the extension of tax credits.
Defeated 4 to 9
Dreier To provide that the House shall not consider any rule on the same day it is reported from the Rules Committee, pursuant to this resolution, unless the Majority Leader has given at least 6 hours notice.
Defeated 4 to 9
Dreier To provide that the provisions of the rule only apply to resolutions reported unanimously from the Rules Committee.
Defeated 4 to 9
McGovern To report the martial law rule waiving a requirement of Clause 6(a) of Rule XIII with respect to consideration of any resolution reported from the Rules Committee, through the legislative day of September 29, 2008. It does not apply to any specific measure, but rather grants blanket authority.
Agreed to by voice vote

This is a Congressional procedure and it has happened before.

July 28, 2006
“The Leadership apparently intends to use a process known as “martial law” to allow these bills to be brought to the floor very shortly after negotiations are completed, with the result that Members of the House are likely to have virtually no time to examine and consider the details of the legislation before they will be required to vote on it. ”  http://www. cbpp. org/7-28-06bud-stmt.htm

Now, the House Republican Leadership has announced its intention to have the House vote, before adjourning , on several major pieces of legislation that are not yet available to House members in final form because behind-closed-door negotiations on the proposals are still going on. The Leadership apparently intends to use this process known as “martial law” to allow these bills to be brought to the floor very shortly after negotiations are completed, with the result that Members of the House are likely to have virtually no time to examine and consider the details of the legislation before they will be required to vote on it. They do this to get them quickly passed without allowing members of congress the time to even read them.

This is important.

It means that the leaders are being rushed to vote on a bill that they essentially don’t know anything about.  They are being held hostage and the powers that be are holding the gun to their heads. This bill is several hundred pages long and would take literally days to understand. It is the old ‘you are with us or’... well you know , and we are not even going to give you time to figure this all out.


Want to see the bill they are trying to force through with this fear tactic maneuver?  Read it!  Your congressman won’t!

http://money.cnn.com/2008/09/28/news/pdf/firstdraft. pdf

September 29, 10:18 am | [comment link]
6. Clueless wrote:

Also of interest, Friday’s debate was picketed by thousands of people holding signs condemning the bail out.

Yet none of the “mainstream media” chose to report on this.

What the *&^% is going on?

September 29, 10:21 am | [comment link]
7. Jeffersonian wrote:

We will come to lament this bailout, mark my words.

September 29, 1:00 pm | [comment link]
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