Saturday, November 21, 2009

Who needs tarp.....

This program is political suicide for too many Dems. Imagine these rich bastards bailing out these fat cat crooks again.

Not labeled TARP, of course.

Expect more 0 interest "loans", tax gimmicks, globalony carbon tax credits, and other rip offs to hide the fact that the system is set up to rob us like an auto repair joint.

The debate over extending TARP steps onto center stage -- DailyFinance
If all these economists question the effectiveness of TARP, their voices will just add to the chorus already singing in Congress that this program needs to end. Rep. John Larson (D-Conn.), Chairman of the House Democratic Caucus, thinks leftover TARP money should be redirected to pay for road and bridge projects that would create jobs. Sen. John Thune (R-S.D.) wants to end the bailout program completely to keep if from becoming a "political slush fund," according to the Post.

The Obama administration is thinking about using most of the leftover funds to reduce the national debt, but it wants to leave TARP in place in case of future financial problems. About $139 billion in original TARP funds remain unallocated and available to the Treasury Department for spending. Banks have paid back $71 billion, and $10 billion has been collected in interest and dividends.

TARP by Any Other Name

In the program's early days, Treasury was collecting only about 66 cents on the dollar on the repurchase of warrants, according to the Congressional Oversight Panel. Thomas Seay, told me by email this morning that "their more recent repurchases of stock warrants, since the release that report, have been significantly closer to our estimates." So, at least the banks are repurchasing the warrants at a price fairer to the taxpayer.

TARP remains unpopular with the public because of the perception that it bails out Wall Street and leaves out Main Street. The public remains angry about the generous compensation packages that Wall Street firms continue to pay their executives.

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