Sonny Clark
Diamond Member
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Taxpayers Lose Billions as Auto Industry Bailout EndsMisinformation Alert Bailout Success Story TARP Niiice dave
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.
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!!”
“…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.”
TARP allowed the United States Department of the Treasury to purchase or insure up to $700 billion of "troubled assets," defined as "(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress."[4]
Troubled Asset Relief Program - Wikipedia the free encyclopedia
That is what TARP is. Nothing else.
Everything else is beyond TARP and were covered by FDIC,etc.
As far as Federal Reserve role I think you are confused with Quantitative easing..QE... An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.
Read more: Quantitative Easing Definition Investopedia
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January 2, 2015
Taxpayers Lose Billions as Auto Industry Bailout Ends Heartlander Magazine
Taxpayers Took a Loss
With the conclusion of the bailout, the Treasury Department’s accounting of auto bailout loans shows taxpayers recovered only $70.42 billion of the $79.69 billion loaned through AIFP, a loss of $9.6 billion, or about $65.75 per taxpayer.
“The sale of the government's stake in Ally Financial—GM's financing arm—marks the end of a piece of the Troubled Asset Relief Program, which was originally billed as a bank bailout program,” said Mercatus Center at George Mason University Senior Research Fellow Hester Peirce. “Taxpayer money was put at great risk, and the return on investment that Treasury now trumpets is not adequate to compensate taxpayers for the risk they took.
“Government should not be in the business of selecting winners and losers in the marketplace by directing cheap financing to favored sectors of the economy,” Pierce added. “Taxpayer dollars were invested in a sector of the economy that private money was avoiding for good reason.”
Once again I must remind others that simple statistics never tell the whole story.
If the auto industry failed, how many workers would have been displaced? Keep in mind that includes sales, suppliers, the front office, line workers, and the ancillary businesses where they spend their earnings: grocery stores, sandwich shops, clothing stores. How many homes would have been foreclosed, apts vacated with no renters to be found, and the blight of empty factories? How many would become dependent on government aid?
Yeah, the government had a duty to rescue the auto industry, notwithstanding Romney's opinion or those who believe such an activity violated the Constitution. Thankful pragmatic adults were in control and not the ideologues.