Last year's $700 billion bailout or rescue has been under attack for moving too quickly, and critics say that we didn't even use the money the way we thought we were. The idea behind the TARP was to buy toxic assets. Instead, the government bought interests in the banks. In a confusing reversal, toxic assets came back on the menu in the bad bank proposal (and now that approach may go away yet again).
Analysts say that the slower speed of this round of new laws is a good sign. By taking a closer look, lawmakers are digging up pork and trying to include only the items that are important and effective in solving the problem at hand. Rapid-fire passage may be a thing of the past.
As they try to figure out what will really help us out of the crisis, mortgage help remains a hot issue. Can the stimulus package help financial institutions and homeowners, or is additional action needed to reduce foreclosures? Some want to get moving on the stimulus and deal with foreclosure mitigation and mortgage modification down the road.
Although lawmakers can keep their jobs for a few more years, it pays to be prudent right now. Some are already calling for criminal investigations as a result of the $700 billion move last fall.
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