By far I am no expert on fixing our economy, nor am I an economist. However, I do know right from wrong.
Why did the bank bailout called “TARP” not help the economy?
The fact is the big banks decided loaning the money out was too risky at this time. This is from Google = “The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions in order to strengthen its financial sector. It is the largest component of the government’s measures in 2008 to address the sub-prime mortgage crisis.”
Eric Thorson, the Inspector General of the US Department of the Treasury, has stated that overseeing TARP is a mess. He claims it’s impossible to oversee. So again, why didn’t the banks simply make mortgage loans with the TARP money?
The bank’s decided that it was too risky to loan out our money. Instead they put our money into the Federal Reserve and are now making 1-2 percent interest on money they never had. In the meantime, home loans are taking the hit and the big banks are making money on our money that they should have never received in the first place. In the real world we call that free money or a hand out.
Why is Congress not doing something about this TARP money that the banks are making 1-2 percent interest on that actually was not their money in the first place? Can they not tell the Federal Reserve to stop wasting our money and paying the banks interest on our money? Apparently they can’t. Things seem so easy until you get the federal government involved.
So let’s evaluate this TARP mess from the average Joe’s point of view. In 2008 we had numerous big banks going broke. Why were they going broke or on the verge of bankruptcy? They made bad loans. It’s just that simple. To put it another way they were stupid. Who said you can’t fix stupid? “Stupid is as stupid does.”
The government steps up and says hold on “Kemo Sabe.” LET’S BAIL OUT THE BANKS BY GIVING THEM TARP MONEY. Now in theory this sounds real good. The government was afraid of a complete collapse of the economy. Bottom line nothing was in place to force the banks who received the TARP money to actually invest in helping the economy. In other words the Feds screwed up.
Did the government have its heart in the right place? We hope so. It’s the banks that keep screwing us. What we need is the Lone Ranger and his trusted friend Tonto to come back and fix this screwed up mess.
“With his faithful Indian companion, Tonto, the daring and resourceful masked rider of the plains led the fight for law and order in the early western United States. Nowhere in the pages of history can one find a greater champion of justice. Return with us now to those thrilling days of yesteryear. From out of the past come the thundering hoof beats of the great horse Silver! The Lone Ranger rides again!”
Man, I remember those words like it was yesterday. When I was a kid hearing those words gave me chill bumps! I had faith in knowing the Lone Ranger could fix anything. I am grown up now and, hopefully, have put away childish things. But, I still have that childlike faith in America. I know she can be fixed.
When I hear the word Obama, I get chill bumps, but it’s definitely not the same.
So I ask you this question, “Who is going to be that daring and resourceful masked rider of the plains to lead the fight for law and order, our champion of justice?”
Today, I don’t know. But I do know one thing it’s not going to be Obama.
Stay tuned… Bob