Things You'll Be Angry To Hear: TARP Worked

You may not totally understand the Troubled Asset Relief Program (or TARP); many don't. But here are some relevant facts that may bring you to a better understanding of the past two years:

1. The TARP, originally passed with funding up to $365 billion during the Bush Administration and then increased to $700 billion during the Obama Administration, officially ends this Sunday. That's tomorrow.

2. The total cost of the program to the Federal Government will be $50 billion dollars, at most. (This estimate is based from economists and analysts in the Treasury and private think tanks like Brookings Institution.)

3. If AIG stays prosperous and the Treasury can cut good deals in selling off its shares in the private sector, then best case scenarios involve TARP breaking even or even turning a profit.

4. This. Just. This.

5. Some have drawn parallels between the savings and loan crisis of the late 1980s (under the Reagan and Bush Administrations, respectively) and our very own Great Recession. If you want to buy into that (hey, why not) then realize that the total damage done from that economic hellhole was around $160 billion, or more than three times that of our recent recession.

The "bail-out" has been despised throughout its existence, spawning the Tea Party and, in general, national anxiety. To some it is a symbol of insidious government power. However, to those in the know, like Utah's very own Robert Bennett, the TARP was something entirely necessary. He told the NYTimes:
"... I do hope that we can get the word out that TARP, number one, did save the world from a financial meltdown and, number two, did so in a manner that, I believe, won’t cost the taxpayer anything. And even if it did not all get paid back, it was still the thing to do.” [sourced]

Still got beef with TARP and the Obama Administration? Just remember that the middle-class has not experienced a tax hike since Obama has been in office. Seriously. In fact, everyone got a tax cut. Seriously. And they probably won't be taxing the middle class in the future. Maybe.

Also remember that you, as a citizen of the United States, vote in the people who make the decisions on a local and state level, as well as the national level. Sure you vote for the president. But if you want that guy to be successful, you should also vote in the people who make him successful. Don't be mad if you don't show up to the voting booth this November.

Also, don't vote Chaffetz. That guy is a douche.

Sources: NYTimes article on the issue (clicky click!), info on the Savings and Loan Crisis (clickety), info on TARP (clickkkk). All others are sourced in article. Let me know if I've missed anything.


eliza.e.campbell said...

This is what the Political Review website should be like. Ya feel?

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