Government Bailout Plan - Devalued Mortgage Loan Assets No More

As reported by Bloomberg - "Paulson Shifts Focus of Rescue to Consumer Lending":

U.S. Treasury Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets.

"Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards," Paulson said today in a speech at the Treasury in Washington. "This is creating a heavy burden on the American people and reducing the number of jobs in our economy.''

His remarks are an acknowledgement that the pitch he made to Congress for the bailout hasn't delivered what was promised. Paulson sold the Troubled Asset Relief Program as a way to rid bank balance sheets of illiquid mortgage assets, and he may encounter resistance from Congress for the remaining $350 billion after using most of the first half to buy bank stakes.

What a surprise! The government bailout plan, $700 billion rescue plan, whatever you choose to call it is being retooled as we speak. The three page bailout plan running amuck. Who would've ever thought? It's okay, our kids can pay for this latest round of sheer incompetence.

Looks like it's time for another pool party at the Ritz to review the details. Let's continue to randomly throw more money at the problem. After all, sooner or later something has to work ... doesn't it?

Again, just to think how many people in the presidential election were fearing the future of our country being mired in Socialism.

As seen on a bumper sticker, if you're not outraged, you're not paying attention. A debt of (not gratitude) .... is owed to our government and the American people who have been asleep at the wheel over the past eight years.