The political outcry came from every corner of Capital Hill. Those $165 million in employee-retention bonus payments made by the government backed insurance giant AIG would have to be returned.

The problem for the Washington politician is that the bonus payments were paid through legally binding contracts. The Treasury Secretary accepted them months ago, and Senator Chris Dodd even exempted the bonus payments in the recently passed stimulus bill.

Suddenly, after spending trillions of taxpayer dollars on stimulus, bank bailouts and an omnibus political pork spending spree, the Washington beltway politician is in fear. Unfortunately, it is not a fear from to much spending in the depth of this economic recession.

The politicians fear is that the American consumer and taxpayer will become an enraged and engaged future voter as failure of private sector performance is rewarded by the federal government through taxpayer dollars.

Indeed, it is assumed by the beltway politician that America will eventually become furious with taxpayer funded bailouts, corporate greed, recession, out of control spending and incompetent and dishonest Washington politicians. Their fear is that the recent AIG bonus payments could act as the catalyst.

So, the political fear today is not the actual AIG bonus payout. No, the real fear is of a populist revolt. The Democrats worry that Barack Obama's big bang agenda of huge deficit spending which will balloon the size of the federal government under the cover of the economic crisis is too much too soon.

In fact, the President uses the absurd argument that America needs to have a national health care program, become energy independent and solve global warming to resolve its current economic crisis.

As a result, it appears that solving the actual financial crisis that was created through unregulated sub prime mortgages and derivative mortgage products, is not as important to this administration as the spending needed to advance their political agenda. How else can anyone explain why Treasury Secretary, Timothy Geithner has not yet given the financial markets a detailed bank bailout plan?

The problem for the administration is that to actually fix the toxic assets problem in the banks to bring to an end to this financial crisis will require another trillion taxpayer dollars, at least.

In the meantime, there is no government exit strategy to any of this. There is no end in sight to the taxpayer losses at AIG, or Fannie Mae or Freddie Mac. There is no plan to sell the assets or solve the problem. Its has financial black hole with taxpayer money constantly going down the drain.

Meanwhile, for the Democrats after only two months in total control of the federal government, the political warning signs are everywhere. Barack Obama's approval rating in every public opinion poll is in decline and for the first time in a long while the Republicans have taken a slight lead in the Congressional generic ballot. (Rasmussen)

Its been clear to everyone for quite a while that taxpayer bailout money does not have proper oversight or accountability. There is no real plan yet in place for the handling of the toxic assets on the balance sheets of the banks.  In addition, there is no plan to end the government bailout of the auto industry. It is obvious that this financial crisis will not be solved without spending trillions of more taxpayer dollars.

Hope will not solve this crisis and using the problems in the economy to push through a political agenda does not properly focus on the dire economic problem currently in front of the country. What is needed is an audacity of competence that is missing in government today. Its a real disappointment if you voted in the last election for change.

http://www.eworldvu.com