Tuesday, October 7, 2008

One Hundred Million

Barbara Boxer mentioned on KQED's Forum today that the bailout bill requires that the government give a company $100,000,000 before the Treasury is entitled to warrants against that company. She also mentioned that they are permitted, to her chagrin, to buy some classes of unsecured loans. Neither of these things seem to be great for protecting the taxpayer's dollars from give-aways to mismanaged, failing financial institutions.

We'll see what Congress does next to address these problems, since Boxer also admitted that here in California 95% of correspondents were against the bailout. With that kind of public pressure, Congress clearly will be on the hook for getting the Treasury's money back one way or another (simply reducing/eliminating tax credits for bailed-out entities so that when the economy does recover they pay back in at a faster rate seems, as I previously suggested, like a good idea to me).

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