Jon Stewart shines bright light on where our TARP bailout money is going

Part I

Part II

A BUZZFLASH NEWS ANALYSIS
by Chad Rubel

The blending of Elizabeth Warren -- serious overseer in her role as chair of the Congressional Oversight Panel over the TARP money for the bank bailouts -- and comedian Jon Stewart proved to be a nice brew of information for people who want to see where our taxpayer money went. A tea, if you will, that was required drinking for the teabaggers from yesterday's protests.

Though Warren has been on other outlets, including "Dan Rather Reports," her appearance on a 2-part segment on last night's "The Daily Show with Jon Stewart" was a chance to get important messages where people will pay attention.

Stewart's take on what Warren told him wasn't tea, so much, as it was "financial chicken soup" for me. "That is the first time in probably 6 months to a year that I felt better."

Warren gave us a brief history lesson where we went in boom and bust cycles, hitting a bust every 15 years or so until the Great Depression. After the New Deal, we went 50 years without a major bust, until Ronald Reagan put his stamp on regulation, and then we had the savings & loan crisis. She noted that we have been "pulling the threads of regulatory fabric."

It takes someone really smart to sift through the economic insanity that is the banks and insurance companies such as AIG, and oversee the TARP funding for these companies. Fortunately, we have such a person in Elizabeth Warren -- professor of law at Harvard, where she teaches contract law, bankruptcy, and commercial law - in her role as chair of the Congressional Oversight Panel.

But despite the rosiness, Warren is fighting a losing battle, trying to get the word out about what is going on, and what we should watch for to make sure the money is being spent well.   

In previous interviews, Warren has pointed out that in the initial $350 billion investment under then Treasury Secertary Henry Paulson, we ended up getting -- for every $100 invested -- stocks and warrants worth $66. Stewart's reaction was unique, at one point, putting his head in his hands in disgust. Warren noted that the news is even worse, given that the value of the stock has dropped.

Warren said that she has no subpoena power, but is able to talk about this on shows such as this. While she has been on numerous news programs, an appearance on The Daily Show crosses much needed lines.

The more publicity Warren can get, the more sight we'll get to see our money do well."If they don't give you transparency, tell me, because I will keep talking about it on the same network after 'Mind of Mencia'," Stewart replied.

While people were standing outside protesting yesterday in numerous parks across the country, wondering why their taxpayer dollars are being spent on a stimulus package that would actually directly help their lives, much more money has gone over hand and fist to the same companies that helped put us in this mess in the first place with very little protest from these same people. Fortunately, some of us are paying attention to the TARP money, and whether we are spending this well.

Even if we can't keep good enough track of the money we have dished out, Warren kept pointing out that we need to change the way we regulate the banking system.

Stewart called attention to a great quote that she had, noting the lack of downside to the shenanigans of Wall Street in the 21st century: "Capitalism without bankruptcy is like Christianity without Hell." We need the threat of a long-term warm up.

A BUZZFLASH NEWS ANALYSIS