TARP Archive

What losses?

[Skip to the end] From MS: 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. ...Read More

Citi to repay $20 billion TARP funding

[Skip to the end] Does anyone in Washington realize any ‘profits’ govt makes reduces private sector net financial assets by that amount? Just like a tax, though a banks marginal propensity to spend is probably near 0. And that TARP funds per se do nothing for banks, its just the change in ...Read More

White House Aims to Cut Deficit With TARP Cash

[Skip to the end] Analogy- You own a house with a mtg on it. You sell your house and give the money to the bank at the closing. The bank officers have a meeting and decide to use that money to pay off the mtg. Brilliant!!!!!!!!!!!!!!!!!!!!!!!!!! White House Aims to Cut Deficit ...Read More

TARP not working

[Skip to the end] It hasn’t done anything for the same reasons outlined in my initial response to the Paulson plan. She doesn’t get it either except that it isn’t working as hoped for. TARP is now 6 Months Old, Little Evidence of Success by Joe Weisenthal Apr 8 (Business Insider) — ...Read More

Review of today’s government actions

[Skip to the end] Two ‘bailouts’ today, the Fed asset purchase program and Citibank: Comments on the asset purchase program: Major theme- the answer to the housing and automobile issue is consumers with enough income to be able to afford their mortgage payments and car payments along with expanding employment prospects to ...Read More

Where do we go after these toxic assets problem?

[Skip to the end] Seems at this late hour the payroll tax adjustment is about all that can get the job done to immediately support demand. Yes, the banking model is to make loans to individuals and business that become illiquid assets and match that with liabilities that are not at risk ...Read More