Reply #9: Bush may let Obama decide part of bailout (Administration may leave half of $700 billion untouched)

[Pale Blue Dot]

Source: MSNBC

WASHINGTON - The Bush administration has told top lawmakers it does not plan to use at least half of the $700 billion bailout fund that Congress approved this fall to aid the financial industry, congressional officials said Monday.

These officials said Treasury Secretary Henry Paulson passed the word over the weekend that he intends to leave $350 billion untouched when the administration leaves office on Jan. 20. That would mean the incoming Obama administration would decide whether and how the funds should be spent.

The disclosure comes at a time when Democrats are working to pass emergency legislation to spend $25 billion of the bailout money to provide loans to the battered auto industry.

These officials spoke on condition of anonymity, saying they were not authorized to disclose the developments.

White House spokesman Tony Fratto neither confirmed nor disputed their account, adding that any decision about the use of the remaining $350 billion was up to Paulson.

Read more: http://www.msnbc.msn.com/id/27770950/

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Here you go President Obama! The mess is all yours!

And pardon me for being cynical, but I think this is only the latest sign that Bush, Pulson, et al, know that this bailout won't work no matter what they do. If they leave the rest of the spending up to Obama, they will then try to blame its failure on him.