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post #1 of 18 (permalink) Old 10-01-2010, 01:55 PM Thread Starter
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TARP Ends

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Nearly two years after the United States government bailed out the financial sector, the controversial Troubled Asset Relief Program (TARP) will expire on Oct. 3, ABCNews reported.

Signed into law by President George W. Bush in 2008, the program allowed the Treasury Department to purchase or insure up to $700 billion of "troubled assets" from banks and other financial institutions in an effort to help these companies avoid additional losses and further the country's economic stability. The TARP funds were also supposed to encourage banks to resume lending, both to each other and to consumers and businesses.

Two weeks after the TARP launched, the Treasury Department modified the program to include buying senior preferred stock and warrants in the nine largest American banks. This gave the banks money to lend, and allowed the government to regulate executive bonuses. In December of that same year, President Bush extended the use of the TARP funds to support the auto industry.

Some companies, such as JPMorgan Chase, Capitol One Financial and Goldman Sachs, have repaid their loans, The New York Times reported. However, according to the Wall Street Journal, more than 600 institutions are still sitting on about $65 billion in bailout funds.

The results of the TARP are widely debated. Some economists say the program cost less than expected and helped to end the recession. Others believe the companies that received bailouts used the money for strategic acquisitions and to pay down debt rather than to increase lending to the struggling private sector.

The TARP was also unpopular with the majority of Americans, who felt its limited success was only enjoyed by the companies that caused the financial difficulties in the first place.

"Popular anger remains high about taxpayer support of America's largest banks, and that anger has only intensified in light of the continuing economic turmoil," The Congressional Oversight Panel reported. "The TARP's unpopularity may mean that, unless the program's effectiveness can be convincingly demonstrated, the government will not authorize similar policy responses in the future.

Thus, the greatest consequence of the TARP may be that the government has lost some of its ability to respond to financial crises."
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Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #2 of 18 (permalink) Old 10-01-2010, 03:43 PM
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Re: TARP Ends

I've read a few articles that are saying that the bailouts will possibly be a money maker for the US taxpayer in a few years. That doesn't even consider at all the increased tax revenue from a salvaged economy, saved homes, jobs that were not shipped overseas, etc...

One thing is certain though, the price tag for the bailouts is way lower than initial estimates.

I'm going to have say something that I thought I would never say. Dubya, you screwed up a lot during your presidency but in the end you initiated changes that literally helped save our economy. I don't know if Dubya would have had the balls to do it if he had not been a lame duck president but either way he did it. Thanks for listening to the professional Economists that advise the POTUS instead of Faux News and the peanut gallery on PSN. That would have been disastrous. (of course Faux News never critisized Dubya regardless of his policies, but whatever)

I'm officially...Stroke-less.
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post #3 of 18 (permalink) Old 10-01-2010, 04:15 PM
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Re: TARP Ends

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Originally Posted by Suns_PSD View Post
I've read a few articles that are saying that the bailouts will possibly be a money maker for the US taxpayer in a few years. That doesn't even consider at all the increased tax revenue from a salvaged economy, saved homes, jobs that were not shipped overseas, etc...

One thing is certain though, the price tag for the bailouts is way lower than initial estimates.

I'm going to have say something that I thought I would never say. Dubya, you screwed up a lot during your presidency but in the end you initiated changes that literally helped save our economy. I don't know if Dubya would have had the balls to do it if he had not been a lame duck president but either way he did it. Thanks for listening to the professional Economists that advise the POTUS instead of Faux News and the peanut gallery on PSN. That would have been disastrous. (of course Faux News never critisized Dubya regardless of his policies, but whatever)
Fuk off you comi.

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post #4 of 18 (permalink) Old 10-01-2010, 05:11 PM
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Re: TARP Ends

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Fuk off you comi.

... Learn to do it right...

"fuk of yu comi" would have been the correct way to state your point...

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post #5 of 18 (permalink) Old 10-01-2010, 05:14 PM
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Re: TARP Ends

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Originally Posted by JD Dearden View Post
Fuk off you comi.
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Originally Posted by CSIPSD View Post
... Learn to do it right...

"fuk of yu comi" would have been the correct way to state your point...
You two mofos need to get off each other nuts !!

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post #6 of 18 (permalink) Old 10-01-2010, 05:16 PM
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Re: TARP Ends

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You two mofos need to get off each other nuts !!
Don't EFN worry about it.

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post #7 of 18 (permalink) Old 10-01-2010, 07:36 PM Thread Starter
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Re: TARP Ends

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Originally Posted by Suns_PSD View Post
I've read a few articles that are saying that the bailouts will possibly be a money maker for the US taxpayer in a few years. That doesn't even consider at all the increased tax revenue from a salvaged economy, saved homes, jobs that were not shipped overseas, etc...

One thing is certain though, the price tag for the bailouts is way lower than initial estimates.
Exactly.

You won't hear anyone on the right admitting to it though.



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Originally Posted by Suns_PSD View Post
I'm going to have say something that I thought I would never say. Dubya, you screwed up a lot during your presidency but in the end you initiated changes that literally helped save our economy.
I have been saying the exact same thing for a while now.

He gets a lot of credit from me, for doing the right thing....at the right time.


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Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
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post #8 of 18 (permalink) Old 10-01-2010, 08:45 PM
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Re: TARP Ends

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Originally Posted by JD Dearden View Post
Fuk off you comi.
Wow that was so insightful.

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post #9 of 18 (permalink) Old 10-01-2010, 09:14 PM
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Re: TARP Ends

I personally have mixed feelings about the "bailouts".

On one hand, the hemorraging was spiraling out of control. In the 80's when we hit a huge recession, the government under Reagan increased government spending to help keep the economy in check, and to try and pump money back into the economy to keep it afloat. By the same token, this is what happened in 2008 with the current round of "bailouts". Was it necessary? In all likelyhood... probably. The reason for government stepping up spending and pumping money into these industy sectors was because the government has a far larger reach in terms of financial capital, and can spread debt much farther than private companies and businesses without falling into bankruptcy. The United States is the single most secure debt holder in the world. Of course the twist is that eventually this money falls back onto the taxpayers and tax reciepts collected from individuals as well as these businesses. Furthermore, the drawback is eventual inflation. Ironically, inflation is good for paying off government debt, but bad for everyone else.

On the other hand, the funds were not targeted appropriately. The intention of the bailouts was to help spur growth. Instead, many companies used these funds to anchor themselves and improve their own corporate portfolios. While in a sense that does help the economy (stablize big business results in stabilizing the economy), it didn't have the widespread effect of spurring the availability of credit needed by smaller companies and individuals in order to further grow the economy and help create jobs. In short, the bailouts missed the mark in paving the way for more job growth. Jobs are one of the largest contributers to economic recovery.

Basically what I'm getting at is the bailouts may have in many ways helped to keep us from sinking into a larger recession or even depression, but has not helped spur recovery. If you compare the current recession to that of the 80's, there were different options available the government could use. Right off the bat, taxes for corporations and the wealthy were slashed in a huge way across the board. This reached further into the economy in stimulating growth across more than just the financial sector or the automotive sector. Now I'm oversimplifying a bit, as many tax loopholes were also cut out in the 80's, so some corporations and individuals couldn't take advantage of those loopholes like they used to. As a result, many businesses and individuals did contribute greater tax income for the government. However, instead of some groups paying huge amounts of taxes, and other groups paying very little in taxes, it was more evenly spread out to everyone. This helped spur growth spanning a greater portion of industries, which resulted in faster job growth.

We've held that same basic principle in tax collection since the 80's, so this time around, the government didn't have that option. Now the big question is what can be done to jump-start recovery, and to pump the economy with new jobs? Well, the government tried with sending stimulus money to states to use at their "discretion"... so to speak. In some cases, states did create new government programs, projects, etc that employed additional citizens. However, it wasn't enough, as the job loss rate in the private sector outpaced what the government could replace with public programs and projects. Furthermore, many states were in financial trouble with their own budgets, and used that federal money to simply maintain the status-quo with their current expenditures... thus not creating new jobs.

Of course, this is my opinion. Don't quote me as being the know-it-all authority here, but this is just something I've been observing now since all of this started. The big question is how can we stimulate job growth? What resources are available? And I'm not talking just locally, but both domestic and foreign. We participate in a global economy, so our job growth is going to depend in a large part on many of our key trade partners. However, since they are also struggling, and we can't tell other countries what to do... it's going to be a slow and painful process to stimulate job growth.

In short, this recession is much different than what we've seen in the past, both in terms of options for our government as well as private businesses, as well as the global aspect. I think the government did mostly what they could in a very short amount of time. If they took longer to craft a more structured bailout legislation process, it may have been more effective. The downside to that is the possibility of taking too long to extend help to the private sector, and we might have plunged into an even greater recession that what we experienced. I think of it as a "damned if you do, damned if you don't" situation.

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post #10 of 18 (permalink) Old 10-02-2010, 08:21 PM
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Re: TARP Ends

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Originally Posted by JD Dearden View Post
Fuk off you comi.
Seriously I don't know why the Mods allow you to continue posting.

I don't mind people disagreeing with me, in fact I enjoy intelligent discourse as it allows me to view other perspectives. Unfortunately you rarely contribute anything of substance to this forum. You have no information. No facts. Just name calling. It's childish JD.

You should behave like an adult and say something to the effect of "You know Sun, that was stupid of me. I had a few too many drinks and was playing interent tough guy. My apologizes. Let me tell you why I disagree with you..."

I won't hold my breath however.

I'm officially...Stroke-less.
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