The Bernanke/Paulsen Bait-and-Switch
When President Obama’s stimulus bill came up for a vote just weeks after he had been inaugurated, the GOP House leadership produced a unanimous result: Every last Republican in the House voted against it. How did the leadership hold all its members together? Easy. It just reminded them of President Bush’s stimulus bill.
On Uncommon Knowledge today, Rep. Thaddeus McCotter, the fourth-ranking Republican in the House:
The very premise [of the TARP legislation], that somehow working people’s money had to go to the people who had caused the problem—that was repugnant to a lot of us. And after that thing was passed, all of a sudden Paulson and Bernanke said, “The toxic asset part of this? That part so many of you Republicans said would not work? Uh, we are not going to do that after all. We are going to recapitalize the banks instead.” That was a vastly different proposition than the removal of the toxic assets. The whole thing was ridiculous.