TARP to cost less than expected
But the once-unthinkable possibility that the $700 billion Troubled Asset Relief Program could end up costing far less, or even nothing, became more likely on Thursday with the news that the government had negotiated a plan with the American International Group to begin repaying taxpayers.
The rescue of the troubled insurer included $70 billion from the bailout program that was enacted two years ago, at the height of the global financial crisis late in the Bush administration, initially to prop up big banks.
At the White House on Thursday, the Treasury secretary, Timothy F. Geithner, briefed President Obama about A.I.G. and about the broader outlook for the expiring rescue program, putting the projected losses at less than $50 billion, at most. Yet neither the White House nor Congressional Democrats are likely to boast much in the month remaining before midterm elections. For most voters, TARP remains a four-letter word.
Blowback
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All lies. Democrats lie … that’s just what they do.
Cook the books, distort the numbers, lie about this, lie about that, lie about everything.
darwin on October 1, 2010 at 9:20 AM
More like TARP expected to cost less than expected.
We’ll see, though I do expect payback to be a shorter time frame than Germany’s WWI debt.
Dusty on October 1, 2010 at 9:20 AM
I blame Bush.
Good Lt on October 1, 2010 at 9:21 AM
Well that’s a relief…instead of a lot of billions, it is just many billions…
right2bright on October 1, 2010 at 9:23 AM
So we’re supposed to feel good about a $50 billion holdup perpetrated by our betters in Washington and on Wall Street?
flyfisher on October 1, 2010 at 9:26 AM
I wonder how come they never mention the tens of trillions that the filthy Fed has poured into the “TBTF” banks.
Rae on October 1, 2010 at 9:30 AM
If it’s not zero then it’s too much.
LastRick on October 1, 2010 at 9:35 AM
“Tarp will cost less”
“Unemployment is improving”
“AIG to pay taxpayers back sooner”
We should have an election every other month – seems to create amazing effect.
jake-the-goose on October 1, 2010 at 9:36 AM
NYT to the rescue! The democrats must feel great knowing that virtually all the institutions of influence and power are going to bat for them. Another reason to kick their butts out and restore sane, serious, limited government so this country can be saved.
KickandSwimMom on October 1, 2010 at 9:45 AM
Just in time for the mid terms…
d1carter on October 1, 2010 at 9:45 AM
And then when there is a Republican Congress in January the NYT headline will read:
“TARP to cost MORE than expected-Blame Republicans”
albill on October 1, 2010 at 9:49 AM
Yeah, it doesn’t actually say they signed a deal. Somehow, the deal will change right after the election.
Dusty on October 1, 2010 at 9:49 AM
You are exactly right.
I found this comment (censored for Hotair) from “Gizmodo” at Karl Denninger’s Tickerforum:
We’re being scammed by criminals!
flyfisher on October 1, 2010 at 9:50 AM
The non-populist argument against TARP as I recall was that it perpetuated moral hazard. Btw the Fed has also provided a disincentive for banks to lend to private businesses by keeping interest rates so low that no bank need take any risks to make a comfortable profit. So yes, the government saved the system; the problem is that that’s the problem.
Seth Halpern on October 1, 2010 at 9:53 AM
The “Cost” that will never be repaid is the fact that half the American people now don’t believe the government has any constitutional boundaries anymore. Does anyone figure that into the economic equation?
Norbitz on October 1, 2010 at 10:07 AM
Norbitz,
Exactly! As I said above, they are criminals, but I should have said they are lying criminals.
Dylan Ratigan on MSNBC occasionally has something worth seeing. Yesterday was one of those occasions. To wit:
Dylan Ratigan With William Black: Pernicious FRAUD
flyfisher on October 1, 2010 at 10:16 AM
I supported TARP. Save the financial system. It’s the stimulus that’s the problem.
Paul-Cincy on October 1, 2010 at 10:44 AM
So lets say AIG does pay some of the money back. Is that money going to go towards the debt, or another progressive pet project?
emz35 on October 1, 2010 at 10:51 AM
So, are they still planning on spending any payback of the money they borrowed in new spending? Yep, that’s what I thought.
Then it still costs the same; 100% of what was spent.
If you’re just going to waste the money even if you get paid back; don’t expect me to be impressed that you got paid back.
gekkobear on October 1, 2010 at 11:25 AM
Beware of the elite media especially in the next thirty days…
d1carter on October 1, 2010 at 11:27 AM
I also supported TARP for its original purpose. These articles completely fail to mention that the program did not spend one dime on its original purpose as enatced by Congress. That was to purchase troubled assets from the banks to get them off their balance sheets and make them solvent, and thus restore their stock values and the general public’s faith in them and allow them to continue making good loans. Instead, the government scrapped that plan when they decided it was going to be “too hard” to price those troubled assets or get rid of them once it had them. So they completely changed the program into one of capital injection into the banks, and then forced all the banks to take it whether they needed it or not. And then they moved on to use it to buy General Motors and Chrysler, which also was never authorized by Congress.
Never in the history of our Republic has Congress authorized such a huge program and then sat silently and watched as the Executive Branch completely changed it into something else.
Now we are supposed to be grateful that the government didn’t end up spending quite as much as it expected on a program that was never authorized by Congress in the first place.
Unbelievable!
rockmom on October 1, 2010 at 11:43 AM
Wow these Democrats might even get my vote. By the time we make money on TARP then Stimulus One will probably be just as big a return on that investment. We’re headed to a budget surplus just in time for the Republicans to get credit! Life just isn’t fair.
(sarc.)
Herb on October 1, 2010 at 12:32 PM
I blame Bush, Paulson and Judd Gregg. Excellent job in writing legislation.
Texas Gal on October 1, 2010 at 1:14 PM