17 November 2008

Something I don't understand re: financial bailout

So, back when we got this $700B bailout package, Henry Paulson said that the money would go to buying bad loans. Then, recently, he changed his mind, saying that he'd use the money for buying ownership in the banks themselves. I don't know why he gets to change his mind about how that money is spent - I don't get to decide to spend $5000 on a new car instead of paying off our car loan...

Anyhow, no one in Washington seemed to make a big stink about it, but now that the Democrats want to take $25B to bail out the auto industry, the Republicans are all squawking about how that's a bad idea, since that's not how the money was originally intended to be spent.

(I'm not sure the $25B on the auto industry is the right choice... I'm making another point...)

My question is this: why is it okay for Paulson to change his mind about how the money should be spent, but it's not okay for the Democrats to ask for a change?

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