As it comes to an end October. third, the outcome of the Troubled Asset Relief Program (TARP) was better than expected and price less than once feared . In a toxic political climate, Troubled Asset Relief Program became a symbol of government waste and an opportunity for Republicans to co-opt the word “bailout” as a weapon to inflict damage on the opposition . The fact that TARP saved Wall Street, automakers and insurance giants, yet failed to perceptibly help ordinary Americans has Democrats on the defensive over a policy enacted by the previous Republican administration.
The real price of TARP
There will be no more loans coming from TARP beginning on Sunday. Of course, it will continue to collect repayments people make. Fortune at Cable News Network reports that it is been 2 years since Congress gave $700 billion to the Treasury Department to prevent an economic collapse. TARP’s bill is less than everyone thought it would be while Wall Street is working on getting back into shape and the economy is working at healing. The Treasury claims the government didn’t give them all of the funds. Only $386 billion actually went to them. That cash is coming back to the government at a much higher rate than expected. Tim Geithner, as Treasury Secretary, explained that TARP was really only going to cost $50 billion at most.
Awful reaction because of TARP
Although TARP has penciled out on paper, the Washington Post reports the money spent is merely a fraction of what the government allocated to save the financial system. More than $1.5 trillion was distributed by the Treasury and Federal Reserve to help the mortgage and housing market. The bailouts have also embedded the federal government deeply to the private sector. A socialist takeover is what extremists think will happen soon because of the economic help being done. Politicians that had a yes vote for Troubled Asset Relief Program will end up having severe consequences in the November elections because of the resentment many feel towards the government right now.
The issues of TARP
The Bush administration started a program however has left Democrats fighting for TARP for making it look sound. ABC News explains that Republicans are excited that TARP is not something that the country likes. That means that those linked to the word bailout, Obama and Democrats, aren’t liked due to the awful connotation. For example, at an press conference Aug. 10, House Republicans used the word at least seven times while badmouthing a $26 billion state fiscal aid package moving through Congress. Although the program is already expired, the “Pledge to America” from Republicans says the program can be ended permanently.
Articles cited
CNN
finance.fortune.cnn.com/2010/10/01/tarp-ends-thrifty-but-unloved/
PMS Money Blog
personalmoneystore.com/moneyblog/2010/07/15/banks-and-bailouts/
Washington Post
washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006621.html
ABC News
abcnews.go.com/Politics/tarp-government-bailout-ends-sunday-started-bush-gop/story?id=11765955
