Bush administration “is trying to privatize Wall Street gains and socialize Wall Street losses”
Friday, November 14th, 2008“A lot of the people that we represent won’t…have a job at Christmastime,” said Congressman Elija Cummings (D-Md.) at a hearing at the Domestic Policy Subcommittee of Oversight and Government Committee. The House Subcommittee met to discuss “Is Treasury Using Bailout Funds to Increase Foreclosure Prevention as Congress Intended?”
“I don’t want these [bailout] companies coming to Congress for a handout, thinking they can take the money, do whatever they want to do, get their manicures, pedicures, massages, pay $1600 a room and then come dancing back to us and say ‘give me more,’ when the American people’s tax dollars are being wasted,” said Cummings, referring to how some companies are using money from the $700 billion bailout plan to give bonuses to their employees. “The United States banking system is turning to the American taxpayer to bail them out and the administration is fully behind them. This administration wants to privatize Wall Street’s gains and socialize Wall Street’s losses,” said Cummings.
“We’ve got millions of people threatened with losing their homes…why won’t the Treasury act swiftly and forcefully to maximize assistance to homeowners…and play a significant role in modification of home loans at risk of imminent default?” asked Chairman Dennis Kucinich (D-Ohio). “The Treasury has been given almost omnipotent power, and you have unfortunately not exercised the interest of homeowners.”
“With due respect sir,” responded Neel Kashari, Interim Assistant Secretary of Treasury for Financial Stability, “if we had spend all $700 billion on loans that’d be about three million loans. There are 55 million mortgages in America…we could benefit three million directly by buying over loans or we could benefit every American by not allowing the financial system to collapse.” Kashari defended the Treasury Department’s decision to invest the bailout money in big banks in order to secure the credit market. “Many people around the country…need help,” said Kashari, “if we went out to each of the people and each of the businesses and helped them directly the $700 billion wouldn’t go far enough. We’re trying to take the $700 billion to stabilize the system as a whole…to help every American.”
