Paulson Says Obama Will Decide on Rescue Spending

[cal04]

http://www.nytimes.com/reuters/2009/01/07/washington/politics-us-financial-paulson.html

President-elect Barack Obama will decide how to spend the remaining half of a $700 billion economic rescue package, a top Bush administration official said on Wednesday, while a key Democratic lawmaker outlined his vision of how new rescue funds should be spent.

"The only decision-maker as to how that money is going to be used ... is going to be the Obama administration," Treasury Secretary Henry Paulson said in a speech that will be one of his last before departing office later this month.

While Paulson has been credited for his tireless efforts to stem the worst financial crisis since the Great Depression, Democrats have faulted him for doling out money to banks while refusing to give direct aid to troubled homeowners.

So far, the Treasury has access to only half of the $700 billion fund Congress approved in October and Democrats on Capitol Hill are preparing legislation that would set conditions on the release of the remaining share.

In a memo to his congressional colleagues obtained by Reuters, one of the top rule-writers for the finance industry outlined his plan to use federal dollars to save homeowners from foreclosure.

[AtomicKitten]

1. That is really great news. n/t

[knowledgeispwr]

2. Sounds like good news to me.

Kicking and Recommending!

[backscatter712]

3. Thank God! That money may yet do something useful!!!

And that's $350 beeeelion dollars - not an insignificant chunk of change. If Obama can make sure rules are in place when that money's doled out, so it goes to actually stimulating the economy and providing assistance to us little guys instead of buying yachts and private jets for cigar-smoking CEOs, this money can really be damned helpful.

Cross your fingers!

[napi21]

4. Great news, but I wouldn't say the initial $$ was wasted either.

Granted, Paulson should have put restrictions on it, but the bank failures seem to have mostly stopped and that's also a good thing.