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New Billion Dollar Direction
U.S. Treasury Secretary Henry Paulson
In yet another turn of events, it seems as if the $700 billion money train designed to buy up toxic home mortgages was derailed. Many were concerned when U.S Treasury Secretary Henry Paulson decided that he was not going to do what he told both the American people and lawmakers. His original goal was to buy up the toxic mortgages in the market until home prices were stable again.
He pushed for Congress to approve a $700 billion recovery program, designed in part to help restore the ailing U.S. marketplace. In a recent announcement however, Paulson said he would like to use the funds to help banks begin lending to one another in order to get the credit markets moving again.
So what's the problem here? The problem is that the $700 billion dollar proposal was an issue many lawmakers spent their political capital and future on. Now, with Paulson going in a new direction with these funds, it's interesting to wonder if lawmakers would have still supported the plan.
In all fairness, the Department of Treasury and the its secretary do have the responsibility to do what it believes is in the best interests of the American people. My only question is whether or not this decision was a change of heart based on insightful information or politics as usual.
Should the U.S. Treasury have kept its original goal of buying the troubled assets, or is this change a sign of good stewardship that lawmakers should support?