Bush: Bailout Trust Issues

“As much as I admire Secretary Paulson and Ben Bernanke, this administration has no credibility at all,” said veteran liberal Democrat Rep. Jim McGovern of Massachusetts. “I wouldn’t trust them to tell me the correct time.”

One of the problems is that Treasury Secretary Hank Paulson faces a credibility gap on Capitol Hill that many trace to the Bush administration’s handling of the Iraq war, launched long before Paulson signed on in 2006.

Hoyer states problem with, “…the Bush administration’s arguments for the bailout bill were “their rationale”…”

“As modified by Frank, the bailout bill would provide $700 billion to buy distressed assets from banks and investment firms. In addition to the so-called toxic debt, the Treasury would get warrants that would give the federal government a potential ownership stake in such firms if they take part in the bailout.”

“It’s the same as with the Iraq war, the administration saying ‘Trust us, give us everything we want,’” McGovern said.