One year and a week after Congress enacted legislation creating the $700 billion “Troubled Asset Relief Program,” the Treasury Department next week is expected to launch its first initiative to buy, well, troubled assets. Odd as it may be, in the year since its creation TARP has been used for just about everything but the original purpose of buying troubled, or “toxic,” mortgages and other securities from financial institutions.
Now comes word that a long-planned Treasury program to acquire assets will be ready to begin. That’s bad news. Not only is the program flawed, but the emergency that spawned it is over. TARP should be ended, not further implemented.
The new program, known as the public-private investment program (”PPIP”), was first announced this March. Much scaled down from its original version, it provides for the purchase of troubled securities by pre-approved money management funds, using private capital matched by TARP funds and non-recourse loans. The net result: taxpayers and private investors would share equally any profits from purchasing troubled securities, but taxpayers would bear more of the downside risk of loss.
I wonder how many firms besides Goldman will be involved? Will there be transparency? Will the books be open to inspection by any and all interested persons? Organizations?
Or, will the books be shrouded in mystery like they at the Federal Reserve?
The program was questionable from the beginning (as discussed here), and is even more so now. TARP was enacted as an emergency measure to forestall a breakdown of the financial system. Today, that system, while still weak, is not near to breaking down. Even if it were, the amounts involved in this new program are too small to make a significant difference (about $12 billion is available so far), but large enough to skew markets and enrich a few people smart enough to take advantage of its provisions.
I wonder who wrote/is writing this program? The same folks that wrote the stimulus and healthcare bills?
The nation is broke.
Who will profit? ACORN? Goldman? Obama insiders?
read more here -
http://blog.heritage.org/2009/10/07/exit-strategy-or-entrance-strategy-new-tarp-program-on-the-way/#Is the continuing crisis being manufactured by the Obama administration?
Why isn't there help for the folks on Main Street?
There are billions and millions for community organizations and homeless people, but nothing to rebuild the vibrant manufacturing base that once existed in this country.
All the money seems to go to wealthy banks, bankers, global corporations, global rich folks, foreign business, workers, and nations...
No jobs, no prosperity, no future future for Americans.
It's Obama's plan to spread the wealthy.
BTW - Where is all this wealth? All I see is debt. How will families survive when there is no money for food? Our paper money is worthless? We are jobless as a nation?
The nation is broke. Global leaders and others no longer have faith in our currency and Obama continue to spend and promote his spending programs.
The nation is dying, and the bones are being picked clean by vultures in Washington and the White House. Is this the Obama legacy? A better future for America? Change we can believe in?just my humble opinions.
