The TARP program which was designed to prevent the collapse of the U.S. financial sector has created new and far more serious problems, according to the special inspector general of TARP.
I hope they didn’t just delay the inevitable.
Treasury needs to get its head out of its arse and put safeguards in place that will address the myriad of problems that still need to be taken care of.
These banking bigwigs need to understand that TARP was NOT universally supported, in Congress or by the public. I preferred to let the system crash so that a rebuild could have been done, and a stronger economy would have emerged. We would probably have 20% unemployment right now, but it would have been a temporary situation that would have improved over time.
Instead, the government and the banks reset the clock. That’s a decision that may come around and bite us even more than it already has.
TARP was for nothing if this attitude continues to prevail on Wall Street and at Treasury. Some people warned that this was going to happen, and THEY WERE RIGHT. Again. And now we’re facing the real possibility of the banks doing the same thing again and counting on Uncle Sam to bail them out a second time.
The cost of a catastrophic meltdown will be much worse than if TARP hadn’t happened. We MUST escape this vicious cycle, before it’s too late.
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