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Obama To Bailout Deficit With TARP Cash

From the Wall Street Journal:

White House Aims to Cut Deficit With TARP Cash


NOVEMBER 12, 2009

WASHINGTON — The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.

The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program — the amount it expects to lose — to as little as $200 billion from $341 billion estimated in August.

A $210 billion surplus in TARP funding could be used to reduced the U.S.’s towering national deficit. WSJ’s Deborah Solomon says the move follows criticism of the Obama administration’s approach to debt.

The idea is still a matter of debate within the administration and it is unclear how much impact it would have on the nation’s mounting deficit levels. Still, the potential move illustrates how the Obama administration is trying to find any way it can to bring down the deficit, which is turning into a political as well as an economic liability

On the $700 billion Troubled Asset Relief Program, the administration is considering a change that may appear to improve the fiscal situation. Agreeing not to spend a certain amount of TARP money will enable the White House, in its budget projections, to assume less money out the door and, therefore, less debt issued. The move would also reduce the deficit by an unknown amount since a certain level of spending and borrowing is already factored into estimated future deficits.

The Treasury Department said about $210 billion in TARP funds remains unspent, including about $70 billion returned from financial institutions. A further $50 billion is expected to be repaid in the next 12 to 18 months.
Journal Community

Budget experts said committing some TARP funds toward debt reduction could help calm concerns about the size and intent of the program. "I don’t necessarily want them to pull back in a huge way, because there’s a lot of uncertainty, but right now what we’ve got could turn into a $700 billion slush fund" for Congress, said Douglas Elliott, a fellow with the Brookings Institution, a liberal think tank…

Why stop with using the unspent TARP money to pay down the deficit?

Why doesn’t Mr. Obama just write a check for the total $1.5 trillion and get it over with?

This article was posted by Steve on Thursday, November 12th, 2009. Comments are currently closed.

12 Responses to “Obama To Bailout Deficit With TARP Cash”

  1. Rusty Shackleford says:

    Monopoly money.

  2. wardmama4 says:

    Zimbabwe here we come.

  3. proreason says:

    They don’t need the “remaining $210 million” in TARP money for the financial system. It’s sufficiently destroyed already.

    The banks are now totally intimidated and in the fascists pockets.

    That money can be put to much better use as a carrot for other businesses to heal to…… like the medical equipment industry that has so far refused to heil hitler.

    And they also have to payoff the doomed congressmen who will demand millions of dollars each to vote for the HealthScare cram-down.

  4. Reality Bytes says:

    Sooo, they paying down debt with debt. Isn’t that check kiting? That’s illegal. Oh, wait, they’re from Chicago. Never mind. Perfectly reasonable.

    At least the mafia isn’t in the business of writing law. I’d rather take my chances with them. The foods better anyway.

  5. Liberals Demise says:

    Paying off bad credit card with another credit card.
    Where did a surplus come from in TARP?
    Was this not “BORROWED” money?

    The train just ran past the “Bridge Out” sign at 110 mph.

  6. caligirl9 says:

    This must be new math, Obama-style.
    I didn’t ever get the regular new math, old style.
    Both are bogus.

  7. GL0120 says:

    I’ve heard of robbing Peter to pay Paul, but there’s no Peter involved here!

  8. pdsand says:

    Since when is Obama under pressure to do anything, much less tackle the budget deficit? The last I heard anyone who had anything negative to say to Obama was just a racist.

  9. Chuckk says:

    When I was a kid, we called this a circle jerk.

  10. Tater Salad says:

    Kid Mao or better known as Barack Obama kinda reminds me of Sammy Davis Jr. who was a……..commedian! This President is always good for a joke………everyday!

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