Paulson, Congress, and TARP

Treasury Secretary Paulson said he does not plan to tap into the remaining $400 or so billion remaining TARP funds. Among his stated reasons is to preserve some firepower and react to developing situations, as well as leave his successor with some flexibility. Fair enough, but what I think he would like to say is "I am busting my tail! You gave me six months and a six shooter to correct a problem that Greenspan's artificially low interest rate atom bomb worked 20 years to create!"

Paulson would have to go in front of Congress to request permission to use the remaining funds. No doubt Congress would love the opportunity to drill Paulson on what he has done so far, and why he has veered from his original plan of buying distressed assets. (I can picture a smug Barney Frank asking questions off the cuff, not waiting for Paulson to respond before asking the next question, all the while not even understanding the nature of Paulson's actions.)

Direct investments in sound US financial institutions is a great way to use the funds. It's what a smart money manager should do when given a pile of money at this time - make sound investments, with a high probability of strong returns over long term.

So let's thank Mr. Paulson for putting our tax money to good use. So he told Pelosi, Frank, & Co. that he'd be buying crappy debt directly and then turned around and made direct bank investments instead. I'd say that he outwitted them. If tricking congress is what it takes to put our funds to good use, that so be it. That doesn't bother me one bit. What does bother me is that Congressional leaders will have a strong say in how the other half of TARP is utilized. And indications are that some Congressional leaders want to bail out automakers and stem home foreclosures.

Let's hope Paulson's successor is as clever.

Intro

Why am I writing a blog? My brother in law turned me on to his brother's blog (http://tiven-huff.blogspot.com/). From there it was pretty easy to start my own.

Where did T Cruise come from? T is my first initial. "Cruz" is a common mangling of my last name.

What's this blog going to be about? No idea.