First Find the Problem, Then Fix It

Things usually work better that way. Rather than trying to fix things before you actually realize what /where things are broken. Sounds pretty clever - right. Too clever for our Secretary of the Treasury.

This very interesting and informative article from the New York Times titled Bailout Monitor Sees Lack of a Coherent Plan gives us a view into what the bailout really is doing. And what the monitor - who happens to be the brilliant Elizabeth Warren - finds is that are just making things up as they go along. Pretty scary when you realize that these are the people "trying" to prevent an all-out economic collapse. Lets take a look -

The head of a new Congressional panel set up to monitor the gigantic federal bailout says the government still does not seem to have a coherent strategy for easing the financial crisis, despite the billions it has already spent in that effort.

Elizabeth Warren, the chairwoman of the oversight panel, said in an interview Monday that the government instead seemed to be lurching from one tactic to the next without clarifying how each step fits into an overall plan.

...

“Our objectives in asking Congress for a financial rescue package were to first stabilize a financial system on the verge of collapse, and then to get lending going again to support the American people and businesses,” Mr. Paulson said at one recent hearing. “If the financial system were to collapse, it would significantly worsen and prolong the economic downturn.”

...
The panel’s power, as sketched out in the law, extends a bit beyond the “bully pulpit” but falls far short of a veto over specific proposals or programs. Its main source of influence is that it will have the ear of lawmakers who can tighten the bailout purse-strings or rewrite its charter.

...
Meetings with Treasury officials so far have made her question whether they understand that “household financial health is profoundly tied to the economic health of the nation,” she said. “You cannot repair this economy if you can’t repair those families, and I’m not sure the people directing the bailout see that as their job.”

If you thought they were making it up as they go along - you were right! If you thought Paulson was just giving the money to his friends - it looks like you are right! Remember, Paulson's original plan called for no, No, NO oversight!!! We can see why that was proposed!

This is a great article. We are also given some hope that Ms. Warren will be looking over Paulson's shoulder.