Friday, March 6, 2009

Stimulus Money - Who's Accountable?


President Obama has directly warned governors and mayors that he will be looking over their shoulders as they begin to spend whatever stimulus funds come their way. He has emphasized that all spending will be "transparent" and open for public scrutiny. Woe be to those who spend this taxpayer money unwisely.

Yet this rule only seems to apply to the "good guys" -- the heavily strapped state and local governments. Did it apply to the banks who got the first stimulus money? Did they have to do what they said they would do, which was to loosen credit and allow citizens access to needed loans? Did they have to show that no money was going to be paid for "executive bonuses" which seems oxymoronic (or just moronic) that companies would give bonuses to execs who drove the companies into the ground in their greed for more, more, more.
It certainly makes sense that warnings go out to those who are getting stimulus money or other loans from the U.S. Government. It makes sense that every cent should be looked at "line by line". But what is good for one entity with its hand out, should be good for all.

It is beyond astounding that bonuses keep being paid out in these failed companies. They argue that they are not using the bailout money. Now how does that even make sense? The money in their coffers, whether it came from profits or handouts, should not be paid out as bonuses to anyone if they had to ask for a bailout loan or stimulus money.

The next thing we are going to hear is that AIG, that boondoggle that "could not be allowed to fail", will thumb its nose at the President and others, and begin to pay out more and more bonuses for excellence in failure. Just watch.

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