TARP or TRAP?
So our prior administration and the present one tell us we need $700 million in TARP money or the banking system will collapse. These banks are “too big to fail.” Now Neil Barofsky, appointed watchdog of the program, states that TARP: 1) won’t cost as much as initially claimed, 2) the program has caused lending to small businesses to shrink by 12.5B since last April, and 3) home foreclosures don’t seem to be slowing down?
So it costs us money, wasn’t as vital as it was made out to be (since all the money wasn’t dispersed), and isn’t helping the economy?
This, combined with the recent irresponsible decision to raise our debt ceiling another 1.9 trillion gives me pause. I’m no economist, but it seems like our country isn’t as financially responsible as it should be. Is there a Financial Peace for governments?