well, well, well
Surprise! Remember all those toxic loans we had to buy up? You know, using $700 billion of taxpayer’s money, on an emergency basis? The very raison d’etre for the TARP monstrosity?
Well it turns out we don’t now need to buy those toxic assets, and we are going to get all our money back!!
WASHINGTON — Secretary Henry Paulson said the Treasury has put a plan to purchase illiquid mortgage-related assets on hold.
Yay, we get our money back!
He’s dreamed up some entirely new and better ways to drown his Wall Street buddies in our cash! Yay!!
“We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments,” Treasury Secretary Henry Paulson said in a broad speech on the Troubled Asset Relief Program, known as TARP, the global credit crunch and the government’s recent steps to address the financial meltdown. “In developing a potential matching program; broadening access in this way would bring both benefits and challenges.”
At least he’s consistent. Errrrr, or not:
The fact that Treasury may now require firms to raise money marks a new phase for the government, which had resisted such a move previously. Before launching its $250 billion capital-purchase program last month, Treasury toyed with requiring banks to raise matching funds alongside any government investment, but it thought that might discourage some firms from participating. It also worried that firms would not be able to raise private money in the current market environment.
A new phase for the government, which some might call a 180 degree reversal, is not exactly reassuring to those of us who already think this plan is idiotic and being run on the twin fuels of guesswork and blind panic.
Tell me why I’m wrong.
Snooper says:
I would just LOVE to tell you why you are wrong but the verbiage escapes me at the moment and for the foreseeable future.
raz0r says:
Wonrg? Well, umm, because, err, you’re not.