Obama, Biden Scold States About How To Spend Bailout Money While Administration Clueless Where Bank TARP Funds Have Gone

3-13-09

obama-biden

Let me see if I can get this straight. Obama and his right hand dunce Joe Biden, two people who’s combined resumes reflective of their extensive executive backgrounds could easily fit on the side of one of those cheap promotional ink pens, have the audacity to warn states that accepted back some of the money they sent to Washington D.C. in the first place, that they had better not “waste” the funds?

Imagine that for just a second. We have a group in Congress that has spent some one billion dollars an hour since Obama was sworn into office including “bailout money” to banks that we can’t even track down and these two goofs have the nads to tell others not to piss away the cash? By the way just who gets to say what is “wasteful” and what isn’t? Are we going to have a “How States Spend The Handouts” czar announced soon? Or is Joe “Hey what’s the internet number for that website” Biden really going to be in charge of this entire mess?

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Freep.com reports,

WASHINGTON — President Barack Obama rallied the people he is counting on to help turn around the economy and warned anew Thursday that he will not tolerate wasteful spending of his $787-billion economic stimulus package.

“If we see money being misspent, we’re going to put a stop to it,” Obama told a gathering of state officials.

Vice President Joe Biden, who is coordinating oversight of stimulus spending, opened the conference with an equally stern warning.

“Six months from now, if the verdict on this effort is that we’ve wasted the money, we built things that were unnecessary or we’ve done things that are legal but make no sense, then, folks, don’t look for any help from the federal government for a long while,” he said.

Sadly so many products of our miserable educational indoctrination system in this country think these guys are just about right with their nonsense. They aren’t.

The federal government is not our mommy and was never intended by the founding fathers to be the supreme Lord of the land like so many of these power mad bozos in Washington D.C. like to pretend it is. The power of government in our Constitutional Republic lies with the citizens and the states, the role of the federal government was rightfully designed to be limited in scope from the beginning by the founders. These men knew very well what would happen if the built in checks and balances of the executive, legislative and judicial branches of the federal government got out of whack in favor of one branch over the others. In addition the Tenth Amendment, which the federal government seems to have forgotten about, reads:

“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

Simply put – the federal government is authorized to exercise only those powers which are specifically given to it in the Constitution with the ultimate power to be left to the states and to the people. The fight for America’s independence centered around the overwhelming power a far away central government had over the lives of the people and they were well aware of that when they assembled the Constitution.

But then again how long has it been since legislators in D.C. were concerned about adhering to the Constitution?

Contrary to what he thinks Obama is not the King of America, in fact the office of the Presidency was deliberately intended from the outset to be fairly weak within the scheme of our governmental system although you wouldn’t know that with the number of executive orders Obama has signed, averaging about one every three days, since he slithered into the Oval Office.

Obama mixed stern language with a pep talk for the state officials he is depending on to help implement the stimulus, which he said will save or create 3.5 million jobs this year and next through investment in infrastructure, energy, schools and other spending.

“All of you are at the front lines of what is probably the most important task that we have in this country over the next couple of years, and that’s getting the economy started again,” Obama said during his brief appearance. The audience gasped when he entered the room.

Can someone please point me to a source that lists everything (anything) Obama has actually accomplished in his life to be able to go before anybody and scold them with “stern language.” I would certainly appreciate it.

Now I have noticed that the worthless lapdog lamestream media continue to dutifully assist Obama with this focus group invented “save or create (insert week to week BS number here) jobs” crap without once asking, “What in the hell is a “saved job” and who gets to decide just when this particular event has taken place?”

“Dude, Obama’s trillion dollar stimulus package just saved my job here at the corner 7-11 and it only cost my fellow citizens $250,000 to do it!”

I’m curious why the reporter thought it necessary to claim the audience “gasped” when Obama entered the room. Is that supposed to make it sound like everyone was in awe of the guy or was it more likely one of those “the emperor has no clothes” moments?

If wasteful spending is found, “we will call it out, and we will publicize it,” he said, reiterating what he has already told governors and mayors.

Biden said regulations would be announced today outlining what stimulus money cannot be spent on.

“A little hint,” he said. “No swimming pools in this money.”

Who the hell do these two guys think they are talking to, a room full of kindergartners?

Gonna publicize any wasteful spending huh?

Ooooo-k then, how about flying the $60,000 an hour Air Force One 747 (not to mention the tens of thousands in taxpayer cash to fly the backup plane and the motorcade vehicles) to Columbus Ohio to disingenuously boast that the trillion dollar spend-u-lous bill “saved” 25 police recruit jobs? A one time grant to hire these officers where the money will run out by the end of the year is not saving any jobs. In fact the reason they weren’t hired in the first place is because the Democrat mayor, Michael Coleman, didn’t have money in the budget for them. Where is he going to find it come January 2010? The tenth stimulus bill?

Meanwhile about the same time Obama is trying to take credit for these police officer jobs and bragging “his” stimulus bill was responsible, a few hundred miles away in Canton Ohio 700 people lined up hoping to land a single middle school janitorial job.

Wasteful spending? How about cheffin’ up $100 steaks and other spendy chow a mere week after moving into our White House while people in Kentucky were without food, water or power and freezing to death? We’ll hear about “Katrina” every week for the next 100 years but when a bunch of primarily white people in “red” flyover country get hammered with a natural disaster it’s just a big yawn.

Wasteful spending? How about sending billions of taxpayer bailout dollars to Citibank (a big Democratic party contributor) only to find they are taking the money and making loans to the government of Dubai!? (if the company didn’t have the money to maintain their business before the bailouts it’s a pretty safe bet that taxpayer funds were used to make these loans)

Citigroup has arranged more than US$8 billion (Dh29.38bn) of financing for Dubai-based public-sector companies in recent months, the bank announced today, piercing the gloom hanging over the global credit market.

Citi declined to elaborate on the terms of the funding, or which entities will receive it.

Last month, he said Citi had “lots of billions” of dollars of exposure to Dubai debt.

Meanwhile the economy of Dubai is “in a downward spiral that has left parts of Dubai — once hailed as the economic superpower of the Middle East — looking like a ghost town.”

No one knows how bad things have become, though it is clear that tens of thousands have left, real estate prices have crashed and scores of Dubai’s major construction projects have been suspended or canceled.

Last month, local newspapers reported that Dubai was canceling 1,500 work visas every day, citing unnamed government officials. Asked about the number, Humaid bin Dimas, a spokesman for Dubai’s Labor Ministry, said he would not confirm or deny it and refused to comment further. Some say the true figure is much higher.

“At the moment there is a readiness to believe the worst,” said Simon Williams, HSBC bank’s chief economist in Dubai. “And the limits on data make it difficult to counter the rumors.”

I don’t know but maybe investing taxpayer bailout money in a country that is ready to go belly up may not be the best way to go?

Speaking of taxpayer bailout money and banks…

Billions in U.S. Bank Rescue Funds are Fueling Buyouts Worldwide – Instead of Lending at Home

Bank of American Corp. (BAC), which is getting $15 billion from the U.S. government as part of the Treasury Department’s $250 billion “recapitalization” effort, is doubling its stake in state-owned China Construction Bank Corp., and will hold a 20% stake worth $24 billion in China’s second-largest lender when that deal is finalized.

PNC Financial Services Group Inc. (PNC), which will get $7.7 billion from Treasury’s Troubled Assets Relief Program (TARP), is using that cash infusion to help finance its $5.2 billion buyout of embattled National City Corp. (NCC).

And U.S. Bancorp (USB), which received a $6.6 billion capital infusion from that same rescue package, has acquired two California lenders – Downey Savings & Loan Association, F.A., a subsidiary of Downey Financial Corp. (DSL), and PFF Bank & Trust, a subsidiary of PFF Bancorp Inc. (OTC: PFFB). U.S. Bank agreed to assume the first $1.6 billion in losses from the two, but says anything beyond that amount is subject to a loss-sharing deal it struck with the Federal Deposit Insurance Corp. (FDIC).

While the Treasury Department’s investment of more than $250 billion in U.S. financial institutions has been billed as a strategy that will bolster the health of the banking system and also jump-start lending, buyout deals such as these three show that the recapitalization plan has actually had a much different result – one that’s left whipsawed U.S. investors and lawmakers alike feeling burned, an ongoing
Money Morning investigation continues to show.

The bottom line: Banks won’t say how they’re using the bailout money. That refusal – coupled with the almost non-existent disclosure and oversight of the TARP program – means the country may well never find out how hundreds of billions of taxpayer dollars were spent.

At the same time, Obama stressed the need to “make sure that every single dollar is well-spent.”

Yeah, no kidding and right back at ya new guy.

This entry was posted in Economy, U.S..

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