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NYT: TARP Is A Success For Obama/Dems

From a shameless New York Times:

TARP Bailout to Cost Less Than Once Anticipated

September 30, 2010

WASHINGTON — Even as voters rage and candidates put up ads against government bailouts, the reviled mother of them all — the $700 billion lifeline to banks, insurance and auto companies — will expire after Sunday at a fraction of that cost, and could conceivably earn taxpayers a profit.

Of course this is the New York Times’ subtle way of trying to defend the Democrats and Mr. Obama. But TARP would have easily made a large profit if the Democrats and Mr. Obama had not insisted it include the GM and Chrysler bailout as well.

And, besides bailing out Mr. Obama’s UAW constituents’ Cadillac pension plans, what good did it do?

A final accounting of the government’s full range of interventions in the economy, including the bailouts of the mortgage finance giants Fannie Mae and Freddie Mac, is years off and will most likely remain controversial and potentially costly.

And of course the subsequent endless stream of cash from TARP to Fannie and Freddie was also an entirely Democrat idea.

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…

It couldn’t have been that "unthinkable," since it was always the plan that the money would be paid back with interest. And all of the proponents at the time said that TARP would turn a profit.

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

Again, why should they "boast"? Mr. Obama and the Congressional Democrats forced the auto and housing bailouts – which are still the most problematic parts of TARP.

The “bank bailout” was the first big issue, before the Obama administration’s roughly $800 billion stimulus plan and its health insurance overhaul, to stoke the rise of the Tea Party movement. After supporting TARP, several Republicans have lost elections largely because of their votes.

But no Democrats have lost their jobs? Again, The Times is trying to hang TARP around the GOP’s neck, while claiming its success for the Democrats.

For many Americans, TARP is more than a vote; it is a symbol of big government at its worst, intervening in private markets with taxpayers’ billions to save Wall Street plutocrats while average Americans struggle through the recession those financiers spawned

Gee, which party tried to demonize TARP as a bail out for "Wall Street plutocrats"?

The Treasury never tapped the full $700 billion. It committed $470 billion and has disbursed $387 billion, mostly to hundreds of banks and later to A.I.G., the car industry — Chrysler, General Motors, the G.M. financing company and suppliers — and to what is, so far, a failed effort to help homeowners avoid foreclosures.

Once again, giving money to Chrysler, GM and GMAC – and bailing out homeowners – have all been Democrat ideas. And, like with most Democrat ideas, they ended up being expensive failures.

Whatever the final losses from housing, auto companies, A.I.G. or smaller banks, those will be offset by taxpayers’ profits from the big banks that have been the focus of their ire since 2008

Typical, is it not?

This article was posted by Steve on Friday, October 1st, 2010. Comments are currently closed.

8 Responses to “NYT: TARP Is A Success For Obama/Dems”

  1. proreason says:

    Cluster tarp.

  2. Rusty Shackleford says:

    TARP-large canvas or other cloth material used to cover large, unsightly objects or other items that get ruined when exposed to the elements. Often used by criminals to hide contraband, illegal immigrants or other nefarious items such as weapons or explosives. Also used by painters and other professionals to avoid getting splatter on other things of value. Most often used for concealment/protection. See also, SCAM, LIE, SMOKE & MIRRORS, RUSE, SCHEME and PLOY

    Thanks, Steve for dissecting this garbage so well. I wonder who they’re trying to convince; The readers or themselves?

    • JohnMG says:

      …..”See also, SCAM, LIE, SMOKE & MIRRORS, RUSE, SCHEME and PLOY…..”

      You forgot TRAP , Rusty.

  3. AcornsRNutz says:

    But wasn’t TARP one of the last failed Bush policies?

    • AmericanIPA says:

      Yes, that was a Bush era idea alright. One of many bad ideas by him. But honestly, what were our other choices when the guy ran?

      That last part about taxpayers making a profit is the funniest thing I’ve read in a long while :)

    • AcornsRNutz says:

      I thought TARP was a pant load, but its funny to me that the things Bush actually did to hurt the country (aka failedbushpolicies, all one word) they used to be ok with. Now, they are actually taking credit for them. Irony.

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