And A Problem Built for Two

The boss gives Pete the Project Manager $700 billion for his project. Pete knows his boss will want a milestone-studded timeline with clear goals and objectives, close oversight with weekly reports. And subcontractors must sign detail-encrusted contracts.

But Pete decides that he will use the money for another project. So he leaves his on-vacation boss a note on his desk. Pete wades into the new project tossing dollars here and there. He has a thing against timelines, milestones, goals, and objectives so he just buries the forms under one of the piles on his desk. And then Pete decides to bring in a buddy, because well, the buddy is short on cash, and Pete likes him. Besides, who needs a contract between friends? When 20 of his employees come to him for direction, he tells them to do their own thing. And since is the boss is on vacation, he gets to skip the weekly reports for 4 weeks.

Let's say the boss is Congress. And Pete is Secretary of Treasury Paulson. Congress wants an infusion of cash to buy toxic assets and mitigate foreclosures. Paulson decided the financial institutions needed stabilizing instead and let Congress know after the fact.

Congress should have hauled Paulson into its office to make his case for changing projects in mid-stream. Congress should have set strict parameters for Paulson's original project including efficiencies and requested weekly updates from the man sitting on half of $700 billion.

Big banks are using the big money to buy up smaller banks. Paulson can't trace the money. And there is a credit freeze that is killing our economy. No money for student loans. No money for people's credit cards. No money for small business. And no money to stop home foreclosures. Never mind that in small business no jobs mean no purchases nor economic stimuli. Never mind that it is common sense for banks to get a better financial deal when people stay in their homes.

No money for automobile loans. So no automobile dealers. No money for suppliers to keep their businesses well-oiled. So no jobs for 1 in 10 people in the country. And as a result the Big 3 tilt on the edge of the economy leaning closer toward a cold, cold death.

But it isn't too late. Paulson and Congress can work in tandem and solve a big problem.

______________