Posted by WARREN MOSLER on January 26th, 2010
The table below from CBO office shows the banks have already repaid TARP in full plus interest…
Even AIG has accounts for only 10% of the total TARP “loss” outstanding.
According to the table, the government has a net profit on it’s investment in the banks.
The majority of losses are stemming from Auto industry loans of -47bln and Home Affordability Mtg Program -20bln…
Yet the government wants to impose a tax to “get their money back” from the banks for 90-120bln???
Hmm… seems to be another agenda at foot here.
CBO’s Baseline Estimates of Federal Funding for the TARP (As of mid-December 2009)(Billions of dollars)
And the funds to the banks necessarily never even went anywhere. They just sat on the fed’s books as excess reserves. The govt can’t ‘spend money’ on bank capital, it’s been and can only be thinly disguised regulatory forbearance.
Seems no one up there has a grasp on simple monetary operations. They still get QE wrong continuously at all levels.