When the bailout bill was passed in the middle of the election, it was debated as a measure to allow the feds to buy up questionable mortgage securities that were freezing the financial system by reason of their unknown values. Once the bill was passed, the Treasury quickly used on third of the total amount approved to invest in preferred stock of banks around the country to help them meet their capital requirements. Today, Paulson has announced that the Treasury will not be buying any of the mortgage securities which were the basis for the measure in the first place.
In short, the biggest expenditure in the history of the US was approved without any valid explanation of what was going to be done given to Congress or the American people. I realize that the situation is fluid and conditions have changed, but I still think that there is a need for someone to explain in detail to the public why this expenditure has changed to such a great extent.
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