Let the money grab continue!

by Ryan Barr on December 19, 2008

in Economics,Politics

Mr. Paulson only has roughly 30 days left in office and somehow he is convinced that he needs to take down the second tranche of TARP funds…

From the WSJ (emphasis mine):
In the very short-term, the allocated but not yet disbursed TARP balances, in conjunction with the powers of the Federal Reserve and the FDIC, give me confidence that we have the necessary resources to address a significant financial market event. It is clear, however, that Congress will need to release the remainder of the TARP to support financial market stability. I will discuss that process with the congressional leadership and the President-elect’s transition team in the near future.

How exactly is this clear?  What have the funds done to really help anything?  The banks have been recapitalized on the liability side (deposits); however they are just dropping that back into the fed and earning interest on it.  Credit is still jacked, consumers are still underwater, mortgages are a mess, home values are continuing to decline, we’ve entered the land of ZIRP and the fed is printing money.  For Pete’s sake, why does the Treasury need more capital?

  • http://www.shocked.org jc

    Agreed.

    The Federal government doesn’t need any money.

    They aren’t responsible with the money we give them. The national debt is outrageous, dollar has plummeted, spending is out of control.

    How anyone can support the federal government appropriating this amount of money is beyond me.

    There is no responsibility or accountability.

    If our government cannot be financially viable, I don’t understand how anyone can think that they know how to make the private sector financially viable.