The following is written by AP:
Federal officials acknowledge difficulties in tracking bailout money
- Wednesday December 31, 2008
WASHINGTON (AP) -- Government officials overseeing a $700 billion bailout have acknowledged difficulties tracking the money and assessing the program's effectiveness.
The information was contained in a document, released Wednesday, of a Dec. 10 meeting of the Financial Stability Oversight Board. The panel, headed by Federal Reserve Chairman Ben Bernanke, includes Treasury Secretary Henry Paulson and Securities and Exchange Commission chief Christopher Cox.
The officials discussed "the difficulty of isolating the effects" of the bailout program "given the variety of policy actions taken by the U.S. government to support financial stability and promote economic growth."
The officials also noted the "difficulties associated with monitoring the use of specific funds" provided to individual financial institutions, according to the document.
The bailout program, created Oct. 3, is designed to break through a debilitating credit clog and spur financial markets to operate more normally again. Credit and financial woes -- along with a severe housing crisis -- have plunged the economy into a painful recession.
Earlier this month, the Government Accountability Office said the government must toughen its monitoring of the bailout program to better keep track of how the money is used.
The government has pledged to provide $250 billion to banks in return for partial ownership. The goal is for banks to use the money to boost lending. However, a recent review by The Associated Press found that after receiving billions in aid from U.S. taxpayers, the nation's largest banks can't say exactly how they're spending the money. Some wouldn't even talk about it.
Money from the bailout pot also has been used for other things, including throwing a financial lifeline to ailing auto companies Chrysler and General Motors Corp., and teetering insurance giant American International Group. Money also was used to back a rescue for Citigroup Inc.
My comment: Folks, this is it. Our taxpayers money is gone to richer people's hand and no way to track. What a waste!! Am I right again?! If people keep saying the Ponzi Scheme $50 billion by Bernard Madroff, how about Paulson, Bush, and whole congress are already running the largest Scheme in human-kind history: $700 billion scheme. Until now, we all know $350 is gone to nowhere. Yes, it seems those money has injected into some banks. However, none of those wanna loan it back to us, tighten lending for commercials, restricted mortgage for home buyers, cutting credit line of your all credit card....etc. Credit market is still frozen, Housing prices are still dropping, unemployment is rising,... I do not want to list them all. I guess everyone now knowing what was happening and what will it be for the year 2009. Recovery is in question for second half of 2009?!
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