Congress is now looking at what has happened in the past nine months and it apparently does not much like what it sees. Yesterday, Congress was interviewing Hank Paulson and Congressman Stephen Lynch asked Ol Hank this question; "If you had to come up here with Mr. Bernanke and said, 'I've got a plan to take $700 billion in taxpayer money. I want to give it to my pals in the nine biggest banks in America', how many votes do you think you would have got up here?"
Apparently Mr. Lynch has begun to figure out what happened, and that is a good thing.
However, the really important issue is somewhat different. Ken Lewis, president of Bank of America, has testified that Hank said that if B of A backed out of rescuing Merrill Lynch after Lewis discovered how deeply in debt Merrill Lynch was actually, he would get Lewis, his top management and all of the board of directors fired. If the government can fire the entire management of a perfectly legal, profitable American company, what comes next?
If you want a cogent examination of this issue, you can find it in our book, The Great Recession Conspiracy. The book is published online at www.scribd.com/doc/16864582/The-Great-Recession-Conspiracy. It is also available as a Kindle book.