The Never Ending TARP Slush Fund
Posted October 21st, 2009 at 4.10pm in Enterprise and Free Markets.
This afternoon President Barack Obama announced that his administration would shift TARP’s $700 billion bailout fund away from big financial institutions and toward small businesses through small banks.Specifically, the Treasury Department will offer capital from TARP, at a 3% rate, to viable banks with less than $1 billion in assets. These small banks must first submit a plan explaining how the capital will allow them to increase lending to small businesses.
But remember that TARP was originally sold to the American people as a way to protect the economy from the systemic risk posed by the collapse of firms that were too big to fail. Small businesses and small banks are by definition not too big to fail.
First under the Bush administration and now under Obama, TARP has become a slush fund for pet political priorities. And as the New York Times reports, this time it is even being used to influence votes in Congress:
What is striking about the S.B.A. initiatives is not just the size of the increases but whom they appear meant to impress. The new loan limits closely track increases proposed by Olympia Snowe, the senator from Maine who is both the ranking Republican on the Senate Small Business Committee and possibly the only Republican considering voting for Democratic-led health care reform.
…
At least one observer was not surprised. “Who is the one senator they need on health care reform?” a lobbyist who has followed the issue asked, rhetorically. “What number do you think they’re going to pick?”
The Obama administration has the authority to extend TARP until next October. But even members of his own party are growing tired of the lawlessness it has created. Rep. Dan Lipinski (D-IL) has called for TARP to be ended this December, telling USA Today: “We don’t even know where the money went.”
The only way to prevent further misuse of the program is to end it.
- Author: Conn Carroll
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October 21, 2009 Todd, Iraq writes:
Well TARP of course has turned into a political tool for Obama and his slew of cronies in the “Dumbocrat” congress. He thinks by shifting untold (B)illions to everyday folks he can carry favor meaning votes when the time is right or perhaps he just wants people to like him. Not likely he needs to be loved by all and attacks anyone who says otherwise from Joe the Plumber to Fox news etc.
He thinks he can TARP us all and we want be able to see what’s truly taking place but in this he’s sadly mistaken. I just hope there’s enough fine Americans out there that still care and are willing to stand up and NOT give him the votes he’s BANKING on with our money mind you.
It’s funny he takes your money with his right hand and gives it back to you in some other form with his left, (haha) remember folks he’s left handed. I can think of many better ways to spend $700billion, (1)pay down the debt or (2)cut every American a check and allow us to make our own decisions etc, etc, etc. The list is endless but bottom line this vote buying nonsense has got to stop.
“Change” 2010/2012 wake up America
Just A Point of View