It seems that everyone wants a piece of the $700 billion bailout package approved by Congress.
The money was supposed to be used to buy up devalued, mortgage-backed securities.
Now it’s going to shore up balance sheets at banks.
And there is a growing line of other hopeful recipients, including hedge funds, automakers (again?) and insurance companies.
This changing approach to stabilizing the economic situation seems to be anything but stabilizing. It appears those at the helm haven’t quite figured out what to do, and the markets are responding in kind to what seems like a leadership vacuum.
What is needed is a blueprint in which Americans — and the financial markets — can put their trust instead of a changing game plan.
Reports began surfacing last week that some of the troubled banks that have received bailouts or are in line to get public money plan to use the cash to buy other banks.
Last week, members of Congress from both parties expressed concern about the morphing plan that the Treasury Department is pursuing.
Sen. Christopher Dodd, Democratic chairman of the Senate Banking Committee, said the new focus on acquisitions was “beyond troubling.”
Dodd also has proposed that after the election, President Bush nominate his successor’s choice to lead Treasury so the new person can get going right away.
Perhaps that would inject some badly needed leadership into the equation. It would certainly be an extraordinary move, but these are extraordinary times.
