About that TARP oversight...

This is what happens when you rush to do something, anything, in a crisis.

Elizabeth Warren, the Harvard Law professor who chairs the Congressional Oversight Panel, which is monitoring the Treasury's spending of the bailout money, appeared this afternoon before a House commmitee to testify about the report -- better characterized as a set of questions -- the panel released this morning.

And from what Warren said, it doesn't appear that oversight of the billions of dollars at stake is being treated by either Treasury or Congress as a top priority.

Warren told the committee that the panel's four members had met for the first time just two weeks ago, and were still "struggling" to find office space. She added that all the members of the panel are serving part-time.

"Well, that raises the question of whether this can really be taken seriously," said Rep. Melvin Watt (D-NC), echoing fears about the strength of the oversight mechanisms are in place.

Raises questions? I think it actually provides answers. The board serves part time, has no authority and no office. This is not a legitimate way to oversee the expenditure of 700 billion dollars.

This is a simple illustration of the larger point that in a rush to do something about the economic crisis the Dems folded again and failed to get legitimate and substantial oversight of the money. Its happening again with the Auto Bail Out where not only is the money coming from a fund designed to create cars but it comes with no strings attached. Its free money. They dont have to keep US jobs or fire management or shift to better cars. Its not a good plan.

I understand the argument that this is a prop loan so that Obama can come into office and deal with this but really dont we need some oversight and conditions on this cash? The industry is only worth 3 billion. It just seems like another giant boondoggle in the making.