Friday, September 19, 2008

This ain't no game, Jack!

One of the pitfalls of viewing the world from a macro perspective is a lack of attention to detail.

This morning I found myself wondering just how half of the nation's mortgage industry and a good chunk of the insurance sector got nationalized without one Congressional vote.

In a recent NYTimes article I read:

Fed and Treasury Offer to Work With Congress on Bailout Plan

Published: September 18, 2008 WASHINGTON — The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history.

While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.

Senior aides and lawmakers said the goal was to complete the legislation by the end of next week, when Congress is scheduled to adjourn. The legislation would grant new authority to the administration and require what several officials said would be a substantial appropriation of federal dollars, though no figures were disclosed in the meeting.

How sweet of the Fed and Treasury to OFFER to work with Congress.

As they say, the devil is in the details- the details that remain to be worked out.

Here's a little detail, what is the criteria to be used to determine who gets to keep their house and who doesn't? Voting records, perhaps.

I hope I'm wrong here, but it seems to me that the last time Congress rushed through legislation without sufficient attention to detail, and consequent airing in the public arena, we got the Iraq War.

This ain't no game, Jack! From a micro perspective, control of mortgage and insurance funds is a pretty good way to control a population. It would be one of the first things I'd do if I wanted to "take over" a population, covertly.

Just a thought.