The House Financial Services Committee plans to hear testimony from Treasury Secretary Paulson and Fed Chairman Bernanke today about their U-turn decision in using the $700 billion bailout money. Originally the money was for rescuing bad mortgage loans, but now Paulson wants to alleviate the pain in consumer debts. He’s even taking his cause to the media with an op-ed in the NYT.
Congress gave Paulson overwhelming power with TARP (Troubled Asset Relief Program), but now it realizes that things aren’t improving much, especially with the doomsday talk from Detroit automakers and stock markets continue to plunge. Lawmakers now want some answers as to how Paulson’s new focus would help the economy.
I really don’t think Paulson and Bernanke know what they are doing. Either the scale of the problem is beyond their control, or they are just incompetent. Whatever the reason, I think the only sure way we know will work is through capitalism without government interference. It’s a bitter pill to swallow, but it’ll help with the recovery. I’m afraid that the government’s help isn’t really helping and will only prolong the pain.
