Editor’s note – this post has some salty language. It’s been too long since I’ve unleashed my inner Rottweiler, so deal with it.
It’s been a while since I delved into the fucked-up world of TARP. The Wall Street Journal yesterday dragged me back into it with news that instead of $341 billion in 10-year losses in TARP, the White House is projecting $141 billion in 10-year losses, and that the $200 billion in “savings” would be spent on a second Porkulus package. Before I continue, let’s review what TARP was supposed to be and what it turned out to be thus far:
- Originally, TARP was supposed to be the functional equivalent of a $700 billion short-term revolving-credit line, where the federal government would buy “distressed” real assets and hold them only long enough for the private market to recover to absorb them. Overall, it was expected that the majority-to-entirety of the $700 billion out there at any one point would be repaid.
- TARP turned very quickly into direct-cash injections into the financial system and an actual $700 billion revolving-credit line, with much the same repayment promises, and then morphed again into the bailout and
purchaseseizure of GM and Chrysler. Ultimately, $204 billion went out the Treasury door. - On the repayment end, $10 billion came back to the Treasury in the form of interest and dividend payments, and an additional $70 billion was paid back. In addition, Bank of America will repay its $45 billion TARP loan next week, and the Treasury claims that total repayments may hit $175 billion by the end of next year.
Now, let’s do some math here. $204 billion out less something north of $70 billion back in (the WSJ story did not differentiate between interest payments and dividends; the latter would honestly be applied toward principal) would leave something less than $134 billion outstanding. Assuming (yes, I know, assumption is the mother of all fuckups, so please spare me the ass-you-me horse manure) that the Treasury isn’t blowing smoke up our asses, and assuming no more TARP “investments”, that $175 billion in repayments would leave something less than $30 billion outstanding.
That leaves a “few” questions. First question; what the fuck else is the ObamiNation going to nationalize with TARP to push the 10-year-loss to $141 billion, and what the fuck were they going to nationalize to push it to $341 billion?
Second question; whatever happened to keeping TARP temporary (fuck you very much for the clusterfuck, Bush)? While the entire $700 billion is “spent” according to the budget, in reality, it’s not spent until the money goes out the door, and it was, up until now, supposed to theoretically be repaid in full.
Third question; if Porkulus I was so “successful” at creating/”saving” jobs (BTW, could any O-bots explain how 10.2% is lower than 8%?), why do we need Porkulus II?
Fourth question; what the fuck does continuing to restore the welfare state or weatherstripping homes have to do with Plugs Biden’s favorite three-letter word, J-O-B-S?
