Bailout Blues

Let us all hope I am wrong and the bailout turns out to be the right step. Today the US House passed and President Bush signed the bailout bill. Rahm Emanuel said

This is only a first step.

Emanuel goes on to say there is more work to do. I fear we will face Bailout II before very long. This is only a first step in the wrong direction for the nation and us taxpayers.

The bill was altered in a number of ways to make the whole mess more palatable.

The amended version of the plan is laced with 150 billion dollars in tax breaks to coax reluctant lawmakers from both the Democratic and the Republican parties to get on board.

The bailout gives the US Treasury power to buy up toxic mortgage debt which has been choking the financial industry and would create a 700-billion dollar federal program to buy bad assets from banks and other financial firms.

The Senate raised the ceiling on federal insurance for bank deposits from 100,000 dollars to 250,000 dollars, and added up to 150 billion dollars in tax break extensions for middle class families and business.

They also retained limits on "golden parachute" severance payments to disgraced Wall Street executives.

I am sad and angry and worried all wrapped in one.

Peace.