By l.t. Dravis

SOMEWHERE – Tuesday, December 3, 2008 – When will we ever learn to stop trusting the ‘smart people’?

We trusted some supposedly smart people, people we pay lots of money to, to use 700 billion taxpayer ‘bailout’ dollars wisely and, now we find out from the Associated Press that those highly-paid, well-benefitted folks let us down.

Auditors from the Government Accounting Office (GAO) are telling us that the Department of Treasury, headed by Henry (Hank) Merritt Paulson, Jr. (you’d think a guy who has a B.A. in English from Dartmouth and an MBA from Harvard and was Chairman and Chief Executive Officer of Goldman Sachs would be fairly smart, wouldn’t you?) failed to understand that it would be stupid to give $150 billion (so far) to banks without monitoring how they spend – and lend – our money.

Right?

Wrong.

The GAO report says, “Treasury has not yet determined how it will monitor compliance with this or other requirements such as limitations on dividend payments and stock repurchases.”

Huh?

Let me translate this into terms people like me (no Harvard MBA, I’ve never been Chairman and Chief Executive Officer of Goldman Sachs, and I’ve certainly never been Secretary of the Treasury) will understand: This is like me going down to my local bank and asking to borrow fifty or a million dollars. I don’t tell the bank how I’m going to spend the money and I don’t tell the bank how much my ‘collateral’ is worth and I don’t tell the bank when, if ever, I plan to give them back their money.

But they give me the money, anyway.

Whattadeal!

The GAO’s 72-page report also tells us that banks are not lending taxpayer money!

But, wait a minute . . . we were sold this ‘bailout’ plan by members of the House and Senate who told us that the whole point of the $700 billion bailout was to stimulate the economy by freeing up credit markets.

These Representatives and Senators talk a lot about ‘putting country first’ and chatter incessantly (especially in front of TV cameras) about how devoted they are to ‘protecting the taxpayers’ of this great nation.

These patriots includes Senator John McCain (Annapolis, class of ‘58), George W. Bush (remember him?), Senate Majority Leader Harry Reid (JD Georgetown University), Senate Minority Leader Mitch McConnell (JD, Kentucky Law School), Senator Chris Dodd, Chair of the Banking Committee (JD, University of Louisville), House Speaker Nancy Pelosi (Degree in something from Trinity College), Representative Brad Miller (JD, Columbia University), Representative John Shadegg (JD, University of Arizona) and too many other well-educated geniuses to mention here.

So, why didn’t even one of these very smart folks understand that it is not very smart to allow bankers to run free with billions of taxpayer dollars?

And, if even one of them was smart enough to figure that out, why didn’t that ‘smarter-than-the-rest’ person do something about it?

Unfortunately, you know as well as I know that we’ll never know.

So, how did Hank’s Treasury Department react to the GAO report?