The initial figure for the government proposed banking bailout jumped from $700 billion to $1.8 trillion literally overnight. The source of the unprecedented price tag comes from Reuters, the worlds leading source for intelligent information to top decision makers in the financial, legal, tax, accounting, scientific, healthcare and media markets.
Just months ago, the Bush Administration repeatedly rejected attempts by Congress to expand health insurance coverage to an additional 4 million children, saying the $35 billion involved was too much to spend. Now the Administration has pitched a $1.8 trillion corporate bailout to companies whose greed outpaced their smarts and plunged our nation into a finance fiasco. The “bailout fund” will benefit corporate giants like AIG, Fannie Mae, Freddie Mac, Bear Stearns, Washington Mutual and the newest government leech Wachovia Bank. Most Americans say “no” to any government intervention.
The bailout legislation that U.S. Treasury Secretary Henry Paulson (former Goldman Sachs Chief), President Bush and members of the Republican Party had insisted Congress pass immediately without changes gave unprecedented power to a single political appointee: Henry Paulson. Under Paulson’s plan, taxpayers would buy millions of worthless bonds from U.S.-based companies—with no penalties and no oversight for the corporations responsible for this chaos. His bashed proposal also involved loading Americans with bad debt from foreign corporations such as USB, which happens to employ Phil Gramm, former economic guru for John McCain’s presidential campaign. USB had admitted to hiding accounts of wealthy Americans in a subsidiary bank in Lichtenstein.
Warren Buffett, the world’s second wealthiest man and successful investor, said he is confident the U.S. financial sector can get through its troubles without a government lifeline.
"I am a huge bull on the American economy," said Buffett, in an exclusive interview with the National Post. He went on to way that our country has suffered turmoil before. "We'll always get through," he said. "I'm a bull on the United States. Just think about how silly it would have been to be anything other than a bull on the United States since 1790. It is not a smart thing to sell the United States short over the years -- or Canada for that matter. The world does get better. People get more productive. More human capacity is unleashed over time.”