As it wraps up Oct. third, the outcome of the TARP (TARP) was better than expected and price less than once feared . Nevertheless, the unprecedented nature of Troubled Asset Relief Program alarmed opponents of so-called big government and turned “bailout” into a Republican code term intended to demonize the administration’s fiscal policies . 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.
What Troubled Asset Relief Program will price
TARP will stop extending loans Sunday, however it will continue to collect dividends and repayments. Fortune at Cable News Network reports that it is been two years since Congress gave $700 billion to the Treasury Department to prevent an economic collapse. The economy is limping along, Wall Street has resumed pillaging, and TARP’s final bill is much less than at first thought. According to the Treasury, the government only lent $386 billion of the fund. The government is getting the money back at higher rates than they thought it would be at. Tim Geithner, as Treasury Secretary, explained that TARP was really only going to cost $50 billion at most.
Bad response because of Troubled Asset Relief Program
The financial system needed saving from the government that came only partly via the TARP, reports the Washington Post. More than $1.5 trillion was given by the Treasury and Federal Reserve to help the mortgage and housing market. The bailouts have also embedded the federal government deeply into the private sector. As a result, political extremists are painting economic rescue as a socialist takeover. Such rhetoric has fed deep resentment of government and an anti-incumbent environment in which any politician who voted for TARP faces a toxic backlash in the November elections.
Political figures and views on TARP
TARP, despite meeting its intended results at a discount, has put Democrats on the spot for defending a program that was the product of the Bush administration. ABC News reports that Republicans are hoping to take advantage of TARP’s unpopularity by linking Democrats and Obama to “bailout,” which has become the dirtiest term in issues. Congress is attempting to pass a $26 billion state fiscal aid package which Republicans do not like leading them to use the word bailout at a conference over it on August 10 about 7 times. Although the program is already expired, the “Pledge to America” from Republicans states the program will be ended permanently.
Citations
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
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