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Want Some Government Money? Apply Now!
November 12, 2008 1:02 PM
This morning Treasury Secretary Henry Paulson addressed a skeptical press about the latest plans for those 700 billion dollars that were appropriated for the "TARP" -- or Troubled Asset Recovery Program. Now Paulson says Treasury won't buy those "Trouble Assets" -- one of the many metamorphoses this program has had in its young life.
In the meantime, care to apply for some TARP money? Turns out there's a five-page, downloadable document to fill in -- if you're interested...here's the link.
And here's ABC's Dan Arnall on whether there has been, as he puts it, a "Great TARP Bait & Switch".
No Troubled Asset Purchases? Then what are they doing with that $700 billion blank check? They are buying bank stock, not troubled assets. We probably shouldn't call it the TARP anymore. Instead, they are focused on a capital purchase plan (CPP) which is the widely reported $250 billion plan to use taxpayer money to purchase a stake in banks. "By October 26th we had $115 billion out the door to eight large institutions," said Paulson. "In Washington that is a land-speed record from announcing a program to getting funds out the door. We now have approved dozens of additional applications, and investments are being made in approved institutions." When we'll get a list of those dozens of additional applicants which will be getting a piece of the $125 billion in remaining taxpayer case remains to be seen. The original CPP participants were told about the program at a closed-door meeting at Treasury and no minutes have been released on what was said during the meeting.
So, is this the biggest bait and switch in American history? There will certainly be critics who say that Paulson and the Bush Administration were disingenuous when they were selling Congress and the American public on the program back in September. And they’d probably be right. Paulson said today, he knew when the bill was signed the purchase of trouble assets wasn’t the right solution to the problem. But history will judge Hank & Co. on the effectiveness of their response. If the risks to the financial system remain low, the future doesn’t bring bigger bank and financial institution failures, and the recession doesn’t get too deep or last too long, then the quick pivot on this plan will probably go unnoticed.
November 12, 2008 in Economy | Permalink | Share | User Comments (484)
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Bush in September: It's a crisis! Urgent! Urgent! I need $700 billion immediately or the economy will collapse tomorrow.
Bush now: Thanks for the cash. Hmmm. Hey Vice (Cheney), what should we do with it?
Posted by: hopesprings52 | Nov 12, 2008 1:20:28 PM
@hopesprings52,
It is so funny how dumb Bush/Cheney is, but YET, the Democrats jumped right on the bandwagon and road along!
For people to talk about Bush and his Policies, the Democrats HELPED to pass them! :)
Now, who is the most stupid? The ones leading or the ones following?
Posted by: ajax | Nov 12, 2008 1:26:03 PM
Basically, if anyone had of read the BAIL-OUT plan that the Senate passed and the House passed after them, you would have seen(if you could read over all the PORK), that they basically could change plans and DO WHATEVER they wanted with the MONEY. And YES, these plans were PLANs led by THE DEMOCRATIC LeaderShip!
Can you all spell S. C. R. E. W. E. D. ?
Posted by: ajax | Nov 12, 2008 1:29:19 PM
Both parties are stealing money from your family to pay their corporate cronies. If your are so partisan you can't see this, then YOU deserve to get took. Barney Frank imploded Fannie Mae and Freddie Mac, last I checked he was a Democrat! BOTH parties are ROBBING you BLIND! And yet you continue to reelect them... Frightening! Truly frightening! What the HELL do you expect when you hire a wolf to guard the henhouse? WHAT? Tell me... No wait, tell your kids who wil be paying for it after your dead!
Posted by: hmn | Nov 12, 2008 1:41:59 PM
Maybe Congressman William Jefferson of the Homeland Security will apply for $90,000.00 in unmarked bills for his freezer. Actually Chris Dodd could probably get a VIP loan as well.
Posted by: jamescbuilder | Nov 12, 2008 1:48:56 PM
@jhw539,
I HAVE NO problem with the TRUTH! Republicans and Democrats alike are responsible for this Crap. My comment was to the one of the finger pointing at the Republicans, when the Democrats had well enough in the last 8 years to FILIBUSTER anything the President or the Republicans tryed to pass. DID they stop them? No, they climbed on board.
Posted by: ajax | Nov 12, 2008 2:17:57 PM
Richard Fuld and croanies should be in jail. The banks made loans to people who did not qualify. There were plenty of criminal activities such as forging signatures, document fabrications, etc. A landscaper buys a $500k house and months later it's foreclosed. When we make bad decisions, we have to deal with the consequence. The banks did criminal things and we have to bail them out? WTH?
Posted by: mark | Nov 12, 2008 2:26:43 PM
@mark,
You are correct.. there were a lot of Criminal Activities, but Ultimately the "landscaper" KNEW damned well he could not afford a house like that.
There were also a lot of loans handed out to Families under the "everyone should own a home plan" that we knew damned well could not paid back.
Posted by: ajax | Nov 12, 2008 2:36:24 PM
Okay, who wants to incorporate as a financial institution? Dibs on the CTO slot!
Posted by: Yukon Sam | Nov 12, 2008 3:40:49 PM
LESS CLEVER NAMES FOR PROGRAMS! Come on, we need you guys in Washington to work on the problem and not think of silly names for the solution. GET TO WORK!
Posted by: Fred | Nov 12, 2008 5:57:33 PM
Now Barney Frank wants to nationalize the auto makers. What a bunch of corrupt politians. Time for Americans to stop paying there taxes!
Posted by: Will | Nov 12, 2008 5:58:12 PM
The entire system should be dismantled. The Federal Reserve has proven to have been a failure, which has added volatility to the economy rather than act as a stabilizer.
Posted by: Brad Zink | Nov 12, 2008 6:02:22 PM
This is sickening. What a scam. People are losing their homes left and right and we're bailing out the people who soaked them.
Posted by: Offal Truth | Nov 12, 2008 6:02:59 PM
"Screwed 08" - it did not matter.
Posted by: The Illuminati Rule | Nov 12, 2008 6:03:03 PM
hopesprings52
Bush in September: It's a crisis! Urgent! Urgent! I need $700 billion immediately or the economy will collapse tomorrow.
Bush now: Thanks for the cash. Hmmm. Hey Vice (Cheney), what should we do with it?
Let's not forget Reid & Pelosi telling everyone they wrote the bill and Republicans have to vote "yes" too. The sky is falling.If Republicans didn't vote "yes" it would be their fault if the sky fell.
What a joke all these leaders are. We have all been scammed by these people to bailout their friends.
Posted by: tlintx | Nov 12, 2008 6:03:39 PM
With each passing day this is getting uglier and uglier. They don't want us to know which banks are getting the money and the stock market isn't fooled and keeps tumbling.
Now Pelosi & Reid want to bail out the aauto industry. Where does it end?
Can we trust any of our leaders?
Posted by: Sonya B. | Nov 12, 2008 6:03:55 PM
If they felt they needed to say and do something quick, before any intelligent assessment could be made, then, well, they did. But how stupid could anyone be to suggest that they have to spend 700 BILLION dollars in a senseless way just because they didn't think of the good way until later?
Posted by: tim maguire | Nov 12, 2008 6:04:52 PM
How many of the clowns in Congress and Senate were RE-ELECTED last week?? Shame on all of us. We had the chance to vote out all imcumbents who are part of the Congress/Senate that has an approval rating of 11%. Not only did we reelect most of them, but we elected two of them as President and Vice-President.
Get involved. Contact your lawmakers and give them a piece of your mind. Remember...we lend them OUR power and voice. Let's be sure to remind them.
Posted by: Screwed Taxpayer | Nov 12, 2008 6:05:15 PM
Can I get 1% debt consolidation loan? I'll pay off my other loans, and that payment will put the money into the banks.
Posted by: Eric | Nov 12, 2008 6:05:29 PM
Yes, but we have Hope and Change now, so it will all be OK.
Posted by: name | Nov 12, 2008 6:05:35 PM
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