Emergency Economic Stabilization Act of 2008 Review

Beyond the fact that there is $700 billion dollars in the hands of the Secretary of the Treasury to buy up and transform and manipulate at his whim “troubled assets”, there is a provision in this bill that should send shivers down everyone’s spine.  Mind you this is a first draft of the bill released for public view:

Section 101(c)(3):

(c) NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following:

(3)Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.

Does this sound like ‘The Godfather’ to anyone else?  “Now, I will do you this favor, but one day I will call on you to do me a favor…and you may not refuse.”  Considering what our Federal government has done under the umbrella of the Patriot Act, it concerns me that this ambiguous provision is in this proposal.  I can only imagine what “reasonable” things the Secretary can think up for my financial institution to do on behalf of the Federal government.

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3 Comments

Filed under by DB, Politics

3 responses to “Emergency Economic Stabilization Act of 2008 Review

  1. Valerie Curl

    My parents went through the Great Depression. I know a few of their stories — stories that negatively affected their entire lives and that of my brothers and mine. My mother’s parents lost their home and furnishings. They lived in a cousin’s barn. My grandfather walked miles upon miles throughout eastern Washington looking for a job. He begin drinking too much. My father’s parents put their seven kids in a Catholic orphanage. The family moved in with my grandparents to save money. My grandfather lost his farm and everything. My dad quit school at 16 and rode the rails looking for job.

    I don’t want a repeat of the same kind of financial meltdown.

    Imagine, if you will, China, Japan, India, the Middle East and Europe deciding to cash in their trillions of dollars in Treasury Bonds all at once — which the US government definitely does not have the financial resources to pay — because they no longer believed in the financial viability of the U.S?

    Where would this country be then? Which barn would you be living in?

  2. Beyond the emotions (fear) that the current situation brings….Does the Secretary of the Treasury really require the authority to compel ANY financial institution to do whatever he wants them to do in order for the EESA to be successful?

    Think about the implications of the statement. The same type of ambiguous language in the Patriot Act now forces innocent people to prove their innocence before they have freedom to travel.

  3. Very scary legislation. I wrote my senators and congressperson and asked them to vote against the bailout. So far they have.

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