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  • The Dodd-Frank TARP Raid: Using Yesterday's Bailout to Pay For Tomorrow's

    After the last-second addition of another $20 billion in new taxes shattered their original coalition for passage, the majority in the Senate went back to the drawing board to identify a new way to pay for the Dodd-Frank “orderly liquidation” fund.

    The result of their leftist brainstorming session? Using the “profits” from the TARP bailout to pay for future Dodd-Frank financial fiascoes. The left and their allies want us to believe this would mark “the end” of TARP. The New York Times reports:

    The new plan would bring an early end to the Troubled Asset Relief Program, the mammoth financial system bailout effort enacted in 2008, and redirect about $11 billion toward heightened regulation of the financial industry.

    This bill does not end TARP and it does not end bailouts. Dodd-Frank supporters are now pretending that the TARP funds were going to be re-loaned out and then give themselves credit for not doing something they weren’t going to do in the first place.

    A slightly more honest approach to the funding would have been to reprogram stimulus money, but that was defeated in favor of this pretend funding. But more importantly, this “tax” was just one of many, many reasons to oppose the bill. It was added at the end of the process to deal with budget concerns. Taking it out does not make this a good – or even a better – bill. Again, this is a minor issue in a huge bill filled with huge problems. The Wall Street Journal adds:

    Most absurd is the claim that any of this money, however it is raised, will somehow be reserved for bank failures. Congress will spend it immediately. Taxpayers will pay for bailouts like they always do, when they happen, and this bill makes them more likely.

    Posted in Economics [slideshow_deploy]

    6 Responses to The Dodd-Frank TARP Raid: Using Yesterday's Bailout to Pay For Tomorrow's

    1. Billie says:

      One thing not corrupt in TARP is it's true meaning, COVER!

    2. Dennis Georgia says:

      Spend is all they know, where the money comes from means nothing, just put on the backs of the few that are working.

    3. Bill, Kansas City, M says:

      Time to clean house, Demoncrat and Ratpublicans. Set term limits and severely limit campaign contributions.

    4. Lynn Bryant DeSpain says:

      Wasn't it Whimpy who always asked,"I'll gladly pay you Tuesday, for a hamberger today." Remember? Popeye never got paid, ever.

      Seems like Whimpy's in Congress now. Do you really trust him? I don't.

    5. Drew Page, IL says:

      How in God's name can anyone place any credibility in what these two people recommend? They are two big reasons why our economy is in the shape it's in. If our economy is ever to recover, these two must be voted out as soon as possible.

    6. Max, Los Angeles,CA says:

      Does anyone know whether ending the TARP means the Obama-connected ShoreBank cannot be "rescued" now?

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