After helping to prevent an economic collapse, the TARP (Troubled Asset Relief Program ) expires on schedule Oct. third. It turns out that the bailout cost only a fraction of what the right wing has been saying . During its life, Troubled Asset Relief Program became politicized by Republicans in an effort to discredit the Obama administration and became negatively linked to the unpopular concept of the Wall Street bailout . As banks bailed out by TARP continue to generate obscene profits, a majority of Americans continue to struggle, which has backed Democrats into a corner for supporting a strategy first implemented when George W. Bush was still president. Resource for this article – TARP, after making bailout a dirty word, comes to an end Oct. 3 by Personal Money Store.
What Troubled Asset Relief Program will end up being
All payments will continue to be collected from Troubled Asset Relief Program although, Sunday, it will no longer give out loan. Fortune at CNN reports that it is been 2 years since Congress gave $700 billion to the Treasury Department to prevent an economic collapse. The economy is getting better slowly while Troubled Asset Relief Program’s last bill is less than many thought it would be. Also, Wall Street is resuming old business. The Treasury states that only $386 billion of the fund was really given from the government. The government is getting the money back at higher rates than they thought it would be at. Tim Geithner claims that in the end, TARP will only have costs $50 billion. Geithner is the Treasury Secretary.
Bad reaction because of TARP
The Washington Post explained that Troubled Asset Relief Program was a little bit of money the government spent. The government tried saving the financial system by spending a ton of money. The mortgage and housing market was something the Treasury and Federal Reserve thought needed saving. They spent over $1.5 trillion trying to help this. The federal government has become part of the private sector now with all of the bailouts. A socialist takeover is what extremists think will happen soon as a result of the economic help being done. Many are against the government at present because of this. That means that midterm elections aren’t looking so great for all of those people who voted for TARP.
Behind TARP are issues
Democrats are fighting for Troubled Asset Relief Program to show that it isn’t that bad of a program. Unfortunately, the Bush administration started this program really hurting Democrats. ”Bailout” tends to be the worst word in politics right now which means that linking President Obama and Democrats to it gives them a bad reputation, especially with TARP, reports ABC News. There was a conference on August 10 where Republicans spoke about a bill Democrats are attempting to pass giving $26 billion to a state fiscal aid package. They used the term bailout about 7 times to get the point across. Republicans made a “Pledge to America” where this was mentioned. The program, although already expired, is something they plan to stop forever.
Articles cited
CNN
finance.fortune.cnn.com/2010/10/01/tarp-ends-thrifty-but-unloved/
PMS Money Blog
personalmoneystore.com/moneyblog/2010/07/15/banks-and-bailouts/
Washington Post
washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006621.html
ABC News
abcnews.go.com/Politics/tarp-government-bailout-ends-sunday-started-bush-gop/story?id=11765955
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