Wednesday, January 14, 2009

Bailout funds need closer tracking


Far too tardily, Congress is bristling with demands for stricter tracking and reporting on how and why the $700 billion stimulus and bailout funds are being spent. Some rebellious members of the U.S. House are even threatening to oppose the release of the final $350 billion without stiffer reporting requirements.

Congress' fury is the political equivalent of shutting the barn door after the horse has been stolen. No such acute number crunching ever surfaced while nearly a trillion dollars rolled out of the treasury for Iraq and Afghanistan during the past 5 years, including into the corporate pockets of no-bid contractors.

So, while Congress rightly lays out conditions for gargantuan spending in the stimulus and bailout plans, it must show its own improved responsibility by asking questions about billions of dollars and not simply approving White House requests.

Let's be clear. As the nation's economic calamity grows more dire with home foreclosures, rising unemployment and financial institutions virtually broke, the $700 billion package is unquestionably needed. Some, such as Nobel economist Paul Krugman, argue strenuously that $700 billion is not enough, and spending more is better than less.

The nation and new President Barack Obama have inherited this catastrophe. It can't be ignored. It won't just go away. And, yes, the bailout represents more debt that compounds the joyless legacy of this generation to its grandchildren.

Substantial portions of the final $350 billion must go directly to relief of distressed homeowners who will lose their greatest lifetime possession, their homes, without mortgage relief. Rebuilding the U.S. credit system also is vital to ensure that small businesses and prospective homebuyers have quick access to loans that will also revitalize the economy.

President Obama and Congress must steel themselves against providing loopholes that will enrich individuals. Vultures hover when the smell of billions of dollars fills the air. So, outrageous executive salaries, bonuses and shell games with taxpayer funds must be scrupulously denied through rigid oversight.

The new Democratic White House must also have on constant duty professional auditors who can spot con games in the making and prevent them before they occur, rather than report losses later.

Having just raised their salaries to $174,000 per year, lawmakers should expect to be burn the midnight oil to rescue the nation from further economic pain and destruction.

In the process, perhaps there's a silver lining in all this. Perhaps Congress will have learned to never again casually dole out billions without oversight.




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