Hate to inform you, but you are being misinformed.
You have been told “TARP WAS A SUCCESS” by YOUR elected political leaders and their appointees! The banks on Wall Street repaid the loans with interest, they say. TARP saved America and MADE MONEY!
The reason it is misinformation is TARP is only 7% of the total bailout. The rest of the bailout, the reason the banks were able to return to profitability instantly and repay their TARP loans in the first place, is the other 93% of the bailout. It went to the finance sector.
TARP is for the investment sector, administered by the Treasury Department.
The rest of the bailout went to the Federal Reserve, the agency that administers the U.S. money supply, is chaired by Wall Street insiders, foxes in charge of the hen house to handle the vast finance sector.
FINANCE is how you GET the money and INVESTMENTS is where you put it. You can INVEST in FINANCES, but first you’ll need some FINANCES to make the INVESTMENTS, investors can invest in financing firms that lend to investors so they can make investments.
CONFUSED? You are supposed to be confused. Most of all, confused into believing there is a shred of truth to the bailout making money!!
THAT 93% of the bailout will NEVER BE PAID BACK by those who lost it, which is everyone who took out a loan they could not pay back, or paid it back by taking out another loan that they could not pay back, or to take out a loan to pay back the loan to pay back the loan they could not pay back. You follow that trail of loans and investments all the way to Wall Street, and it leads you to a major investment bank, which is insolvent, so it gets merged into another investment bank, which is insolvent, so it it gets merged into an investment bank that itself had just been merged. Finally, there are too few investment banks, holding the merged together investments of billions, and they are too big to fail.
You get the picture that something went awry. That awry was all the financial government regulations that had to be struck down to allow any of that to happen.
Regulations it is now TOO LATE to implement.
So, anyway, the truth is the bailout is 4.5 trillion bucks of unrecoverable losses and TARP was part of the bailout, not separate from it.
Further, if the President ever tells you this lie about TARP being profitable, you stand up and yell right in his face “YOU LIE!!”
Here’s what the disinformation sounds like…
“Thus ends the much-maligned ‘Wall Street bailout.” — http://www.washingtonpost.com/wp-dyn/content/article/2010/07/04/AR2010070403831.html
“There is now broad agreement that the bailouts worked, stabilizing the financial system and preventing an even deeper crisis.” — LA Times
“Six banks repaid nearly half a billion dollars in funds they received from the government bailout of Wall Street, the Treasury Department said, bringing the total bank repayment under the Troubled Asset Relief Program to 99%.”
“…The banks repurchased TARP investments with proceeds to taxpayers totaling about $475 million.”
“Through the repayments announced Wednesday, as well as dividends and interest, taxpayers have recovered about $244 billion of the $245 billion in TARP funds disbursed to banks, the Treasury said.”
–Press Release, widely distributed, read on evening news, reprinted and disseminated to Obama supporters so they can use the info to battle critics of President Obama.
The whistleblowers wish to say…
“…Research shows that the U.S. Treasury Department’s ten TARP programs represent less than seven percent of the $4.7 trillion disbursed by the U.S. government in an effort to aid the financial services industry.”
Far more money has been disbursed by the Federal Reserve to prop up the financial system than by the U.S. Treasury and those loans are still outstanding.”
“It is absurd to declare ‘mission accomplished’ while counting only one small portion of the bailout.”
–Center for Media and Democracy
For more on “Troubled Asset Relief Program (TARP) myth-making” see