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Obama To Use TARP Cash For Gov’t Jobs

From an approving Associated Press:

Administration to slash bailout cost estimate

By Martin Crutsinger, AP Economics Writer

December 7, 2009

WASHINGTON – The Obama administration will lose $200 billion less than expected from the federal bailout program and is looking at using part of the savings to fund new job creation efforts.

A Treasury official said Sunday that the administration now believes the cost of the financial rescue program will be at least $200 billion below the $341 billion estimate it made in August.

The official, who spoke on condition of anonymity because the administration’s new projection has not been released, said the lower estimate reflected faster repayments by big banks and less spending on some of the rescue programs as the financial sector recovered from its free fall more quickly than the administration originally expected.

The administration had made the $341 billion estimate as part of its midsession budget review released in August.

The official said the new estimate will become part of the administration’s new budget — meaning it at least some of the savings will be used to reduce the government’s projected deficit — which President Barack Obama will present to Congress in February…

Obama is scheduled to give a speech on the economy Tuesday and White House officials have said it is likely that the president will talk about using repaid TARP funds for a new job-creation program.

House Speaker Nancy Pelosi and other top Democrats have been drafting a jobs bill that would tap resources in the bailout program.

Among the proposals being considered are funding as much as $70 billion in new transportation and infrastructure projects, providing new tax credits aimed at encouraging small businesses to hire workers and providing additional aid to state governments to preserve public sector jobs

Treasury has spent about $450 billion from the TARP, including around $290 billion poured into banks.

Bank of America announced last week that it would return $45 billion it had received, adding to the $71 billion already repaid by nearly 50 other financial companies. Banks have also paid the Treasury about $7 billion in dividends.

Lowering the estimated cost of TARP will also lower the administration’s projections for budget deficits…

Remember, a number of the banks who got TARP were forced to take it. So this might have been part of the game plan all along.

Still, so far only $116 billion out of the $290 billion given to banks has been repaid. And yet Mr. Obama and the Democrats are declaring that the government will lose $200 billion less than expected?

And they aren’t just counting their unhatched eggs, they are spending them in ways that were never intended.

And, as we have noted before, the Democrats claim they are going rebuild the infrastructure — which the ‘stimulus’ was supposed to do and hasn’t — and make it easier for small businesses to hire workers – by giving them a preposterously small token sum.

But of course the real goal is to hire more government workers, which means more Democrat voters.

And the cherry on top of all of this is that Mr. Obama is still going to pretend that he is reducing the deficit with this very same money.

It’s magic.

This article was posted by Steve on Monday, December 7th, 2009. Comments are currently closed.

7 Responses to “Obama To Use TARP Cash For Gov’t Jobs”

  1. GetBackJack says:

    When BigZero began authorizing the federal establishment to begin buying up our debts with borrowed money in order to issue even more borrowed money, well … the circular logic of that is so far beyond the bounds of normal human cognition that anything afterwards is off the charts and into white coat and Thorazine territory.

  2. BigOil says:

    If you follow their logic here, government jobs are considered toxic assets. I think I may have finally found some common ground with Odumbo.

  3. Rusty Shackleford says:

    Dingle-barry has a plan.

    But said plan is a failure.

    Though not the way he sees it.

    I collect a paycheck every two weeks. It goes into a bank account and for me, there is little to no savings. What I make, I spend. Therefore, TARP has nothing to do with it since my bank did not take any public funding. The company that pays my salary also did not take any public funding.

    I also do not have a mortgage and I do not use credit cards.

    Therefore, Dingle-barry has nothing to do with my money.

    So, hey, government….from me to you…..get bent.

  4. Tater Salad says:

    The Obama “Stash” or Stimulus money is really working isn’t it? What a joke! Here’s a good one:


    • Liberals Demise says:

      If there is a silver lining to this I think I’ve found it.
      If no one is working then the gubbamint is not collecting taxes. Hence, no money for the catastrophe called ‘Health Care Reform’.

      I know, I know………they’ll do it anyway.

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