The Prearranged, Preplanned, and Premeditated Bailout

It is one thing to grant a bailout during a so called financial crisis, but its another thing to prearrange a bailout a year in advanced when markets are soaring. There are two bills that are the "bailout" bills, HR 3997 and HR 1424.

HR 3997 is known as the "Emergency Economic Stabilization Act", however, its original title is "An Act to amend the Internal Revenue Code of 1986 to provide tax relief and protection for military personnel, and for other purposes." HR 3997 was introduced on 10/30/2007, that is right, 2007, that is no typo. Perhaps congress just amended HR 3997 to use as a vehicle for Emergency Economic Stabilization? Let's give them the benefit of the doubt on this one.

Now, let's take a look at HR 1424, which recently passed the Senate. HR 1424 is titled, "A bill to provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes." (emphasis added) That was a mouthful.

The title is concurrent with the bailout theme, however, the timeframe of HR 1424 introduction to congress is NOT current at all. HR 1424 was introduced in 3/9/2007. That is right, 2007, NOT 2008. Nearly a year and half ago! Nearly a year and half before the so called financial crisis. The Dow was at 12,114 and rising. It peaked on 10/12/2007 at 14,093.

This so called bailout has been in the works for a year and half. HR 1424 is not only a vehicle for "Emergency Economic Stabilization", it was prearranged, preplanned, and premeditated even before a financial crisis came to fruition.

Sources:
HR 3997 All Congressional Action:
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR03997:@@@X

HR 1424 All Congressional Action:
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR01424:@@@X