Bipartisanship in the Bailout: When Does the New Treasury Secretary Start?

The Democratic leadership agreed to sign on to the bailout from the beginning, risking the wrath of much of the country, including many of their core supporters. Given this history and the severity of the crisis facing the economy, how about a little reciprocity?

This one is simple. Why shouldn't President Bush commit himself to making the next President's nominee for treasury secretary a full partner in the conduct of the bailout from the day that this person is named?

This would mean that the new president's nominee for treasury secretary would be consulted and have input into all the decisions related to the bailout. Of course Henry Paulson would remain secretary and would have the final call on all decisions. However this arrangement would ensure that the new secretary hits the ground running.

The country clearly faces a severe financial and economic crisis. Under the circumstances, this one should be a no-brainer. What would be the argument against giving the new treasury secretary a head start? (Hey, it could be a Republican.)

So, were the Dems taken yet again or will Bush be open to bipartisanship when it means that he may actually have to give up something?

Comments

[Maschine]

You know, when all the politicians and talking heads begin to talk down at you telling you , this bailout is absolutely necessary, then you have to begin to believe that your basic gut instinct, which is , let them fail, is the right one.

[reunionpi]

Scattered from California to New York: The judgments from the Department of Labor, tax liens against 401-K plans, state tax liens, mechanics lien, judgments from other companies


Henry Paulson, 5 weeks before he became Treasury Secretary, got a FANNIE MAE/FREDDIE MAC 30 year fix mortgage/loan for his 82 year old mother in May 2005 for 5.37%, (below rate)

webofdeception.com

[mgloraine]

There is the question of logistics: a new Treasury Secretary (or any cabinet post) needs confirmation by the Senate. That can be contentious and time-consuming under the best of circumstances, but the scenario you suggest would involve confirmation for a "future" Secretary by a "lame-duck" Senate. Expecting a person with this dubious approval to insert him/herself into the midst of this financial debacle and make some positive progress working with a hostile and equally "lame-duck" administration with all of its criminal sub-plots seems unrealistic. And the "future" TreasSec would probably have to be re-confirmed after the inauguration, meaning he/she could potentially be rejected on the second go-around (Republicans would love to undo any progress which may have been achieved by an early start).

I think the best we could hope for would be to install observers at every critical point to prevent secrecy, skullduggery and theft by Paulson & Bernanke (and Cheney) between now and January. Most of all we need full transparency, and to keep an eye out to make sure the money doesn't all disappear into the pockets of the usual Cheney-Bush cronies.

[Erdgeist]

I think we start where FDR started. This is a lot like what happened during the Hoover Administration. In 1932, on the recommendation of President Herbert Hoover, Congress created the Reconstruction Finance Corporation (RFC). Supposedly the money would be used to make loans to banks, the railroads, and other sectors of he economy. Hoover, however, was not proactive enough. He believed that the "invisible hand" of God would eventually save the market.

Hoover, in fact, was more interested in bailing out his buddies and cronies using the federal funds. He didn't care about the public good (sounds like Bush and Paulson). Because Hoover didn't act in a responsible way, in 1933 the banking system collapsed again!

When FDR became President he dumped Hoover's stupid ideas about the invisible hand and acted proactively for the good of the nation--not his pals. When FDR took control, he directed the RFC to oversee bank reorganizations and invest directly in the financial institutions through preferred stock purchases. We owe a huge debt of gratitude to FDR and his Democrats.

It looks like history is repeating itself with OHB. If you think about it, McCain even looks like an old grizzled Hoover--but with the disposition of Yosemite Sam.

[dcg4mn]

We also need a resurrection of the WPA: repairing and upgrading our infrastructure, renewable energy, and green technology, can provide tens of thousands of jobs, at minimum, for these essential needs.

[Yermammy]

I think you know the answer to that one. In one last move, to show he's superior to his dad and to show America just how powerful he is, George W. Bush tanked this economy on purpose. Anything that was proposed as far back as a year ago, was ignored and reacted to. This criminal has done so much damage to this country (35 articles for impeachment), I don't know if 20 years will see a much of a recovery. I still believe in this country. My grandfather was a captain in the army air corps in WWII and taught me to be self reliant, but if we don't hold these people to account, all hope for a future here is gone. Nancy Pelosi and John Conyers need to finally bring justice to and for this great land of OURS.

Come on Barack, show us what you are truly made of!

[jpinsatx]

FDR... Rescue US, again!

"The WPA (Work Projects Administration) provided jobs, [training,
education] and income to the unemployed [under-employed] during the
Great Depression in the United States. The program built many public
buildings, projects [bridges, retaining walls, dams, reservoirs] and
roads and operated large arts, drama, media and literacy projects. It
fed women and children [elderly, disabled] and redistributed food,
clothing and housing."

Public Work Projects (Infrastructure), both physical and human are THE issues.

The Physical Infrastructure that supports a society, such as roads,
bridges, water supply, waste water, power grids, flood management,
communications, etc.

The Human Infrastructure that supports and makes possible the American
Way of Life... The Middle Class, The Working Class, The Middle Income!

Who will give US a NEW DEAL to:

1) Stop job outsourcing?

2) Bring outsourced jobs back?

3) Make quality education available to all citizens?

4) Make quality health care available to all citizens?

5) Promote, support and protect small business growth?

6) Protect consumers from banking, lending and credit bureau abuse?

7) Protect the Constitutional rights of all citizens?

FDR... Rescue US, again!

[LanguagePolice]

I've been thinking about that for a couple of months and I couldn't agree more. I just wonder if it's safe for Obama to talk about openly- he would be setting a pretty high bar for himself, and the Repugnantscum would start hollering "Commie, commie!"

Roosevelt also started the Civilian Conservation Corps and the Tennessee Valley authority. The thought of the TVA is especially appropriate at times like this, because we need to begin to begin a green energy infrastructure, and it's something that we can market to other countries.

The real question is whether or not Capitalism as we know it, American "consumer" capitalism and and "financialism". Those days may be over. I hope the transition is peaceful, but I think it's time that we "morph" into a value-based economy rather than a consumer economy, which depends on consumer spending for "growth". The terms "recession" and "depression" are expressed in the concept of "growth" or lack thereof.

Maybe "growth" is not what we need. Financialism has shown us how worthless that concept has gotten now that we've seen the implication.

I saw a thing on TV tonight about a guy who started an "urban farm" in the city of Milwaukee, and he was growing enough fruits and vegetables that he had enough slack to discount for people of less means. He was even raising perch.

[belief08]

Why are we the taxpayers baling out these CEO's that take home millions upon, upon millions from the company they are supposedly running? Taxpayers are paying $700 billion dollars to these creeps so they can go on holiday. What the he$$ would they have done if no one bailed them out?

If the government truly wanted to rebuild this market, they could have done what so many people have suggested. There are 350 million people in the US, why didn't they give each american family $1 million dollars to reinvest back into this failing market. No, they want to reward these corrupt "a" people that raped this countries economy to line their own pockets. In all my 50 years of life, the only trickle I've seen is upward, nothing ever worked it's way down to the lower class. When it did, what did it get them; foreclosure and living on the street or in their car or under the overpass. Yet the CEO's are able to take a nice vacation for a good job they did. How sick is that?

[sunny123]

Best idea I have heard yet. Planning ahead usually isn't Shrub's stong suit, but this suggestion is great.

[BadChristian]

General "Buck" Turgidson:
" I... I don't know exactly how to put this, sir, but are you aware of what a serious breach of security that would be? I mean, he'll see everything, he'll... he'll see the Big Board!"

--Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb (1964)