Manic Melon

Step 1: While congress has dropped the ball, the FBI and SEC are cleaning up after them. They’re asking the tough questions, announcing tonight they’re investigating Fannie Mae, Freddie Mac, Lehman Brothers, AIG, Countrwide, and 20 other companies.

After they find out that their demise was the result of risky business practices and excessive leverage, maybe it will be understood that only the end of these bad business habits will cause an end to our credit collapse. We’re about to dump 700 billion dollars of fuel onto this fire, so I’m happy to see that an investigation is now beginning. Sadly, I fear the results of the investigation and announcement that these companies were simply risky and poorly managed, can’t be solved by financial bailouts.

Step 2, in case you want to know, is use this ill conceived bailout to sneak in the right to audit the infamous Federal Reserve! This private bank (you won’t find them in the government section of the phone book; they’re so NOT federal that they have to pay for stamps; oh, and there is no reserve… only DEBT) is asking that the treasury have the right to purchase assets at whatever value it decides from banks in trouble, without right to review in court or congress any of the activities. As if we have no control the purse strings already, this effectively hands the suitcase over to 2 people, neither of which are elected to their positions.

Needless to say, I’m concerned.