Join Date: Feb 2010
Location: Cartersville, GA
Re: The true cost of TARP. Are we being had?
The fact of the matter is we do not know what would have happened without intervention. All of the studies are just opinions.
We do have one fact when it comes to GM, Ford & Chrysler. They were all in the same boat, broke and bleeding money. None of the big three really stood much of a chance without government intervention, at least that is what they were pandering.
Ford realized quickly they were about to get into bed with the saviour / devil, call it what you want. They backed out of all requests and were able to "go it alone". And look at them now, they are making a great comeback and appear to be on steady ground.
So we have no idea if GM & Chrysler REALLY needed help or if we were the easy way out. GM begged for money worrying the down line suppliers would lose out and cause the financial disaster to worsen. But the down line supplier did lose out through bankruptcy. The one thing these loans were to stop.
Now GM has payed back their TARP with TARP. Aren't we lucky?
I say these companies were to big to fail. They had vast amounts of revenue and assets. Someone would have either bought them, partnered with them, or they, like Ford, would have figured it out on their own.
As for the banks, who cares if we have a few less banks. I think that would be a good thing.
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