Regrets of a Representative

Uncle Hank and my cousin Benny (I'm not related to them, but those sound like cool nicknames) had the pleasure of testifying before the House Financial Services Committee this week to discuss the the EESA/TARP program. Paulson's testimony discussed how the now famous $700B bailout, I mean rescue plan, did indeed unfreeze the credit markets and save the financial system. He also indicated that they have chosen not to purchase distressed/toxic mortgage assets.

The focus of this article is not to analyze Paulson's claim - I intend to address that in a future post. Nor am I focused on contrasting Paulson's original testimony with his latest. (Although, I can't resist this quote: "[the] root cause is the housing correction which has resulted in illiquid mortgage-related assets ... We must address this underlying problem.")

That leads me to my story. I was watching the hearings earlier this week and was struck by the interrogation from Rep. Nydia Velazquez (D-NY). Tonight, I was doing a bit of research on her and have come to find my timing may be impeccable. The political rumor mill has Velazquez as the front runner to take Hillary Clinton's (D-NY) Senate seat should she become Secretary of State (which is looking like a done deal).

Velazquez's questioning of the panel can be viewed in its entirety here.

After watching this, I can't help but think that Velazquez regrets her vote. She states that she "agonized" over the vote and her frustration is evident. I think it is safe to say that she feels that she was lied to by Paulson and Bernanke when they demanded their $700B. Faced with struggling homeowners in her district and representing small business interests across America as the Chairwoman of the House Committee on Small Business, she voted yes. She hoped it would help.

But, what did she expect? She should have known better. Her passionate speech will probably help get her that Senate seat. I hope she will wake up and realize many of her colleagues have little interest in her interests. (Or at least the ones she proclaims.)