{"id":4117,"date":"2009-02-01T11:53:30","date_gmt":"2009-02-01T16:53:30","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=4117"},"modified":"2009-02-06T08:03:26","modified_gmt":"2009-02-06T13:03:26","slug":"tarp-trap","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=4117","title":{"rendered":"TARP TRAP"},"content":{"rendered":"

TARP<\/a> money is being distributed to banks as we speak, and more is on the way.<\/p>\n

Sounds like a plan, right?<\/p>\n

Anyone want to borrow money at 10-12%?<\/p>\n

…when Treasuries<\/a> are in the tank?<\/p>\n

Didn’t think so.<\/p>\n

But\u00a0 Obama wants to force<\/em> banks to lend these dollars.<\/p>\n

The $350 billion second half of the federal government bank bailout<\/a>\u2014aka TARP (Troubled Asset Relief Program)\u2014funding was released by the Senate. According to the Wall Street Journal, President-elect Barack Obama intends to “spend $50 billion to $100 billion on a ‘sweeping’ foreclosure-prevention effort” as well as “impose tougher restrictions on banks that receive government aid, including requirements on banks to lend money, increased restrictions on executive compensation and curtailed dividend payments for some firms.”<\/p><\/blockquote>\n

The spankings will continue until moral improves.<\/p>\n

Forcing banks to lend money…hmmm. Sound familiar?<\/p>\n

C.R.A. anyone? That worked well for the economy didn’t it Mr. Jimmy?<\/p>\n

TARP money costs banks 8-9%; it’s debt that shows up on their books as an “asset.”<\/p>\n

Huh?<\/p>\n

To make money, banks need to lend it out somewhere north of what it costs them, to make what we here in the real world call a profit.<\/p>\n

As such, the good banks want nothing to do with TARP money and are simply waiting for the banks that took it or are otherwise soon to be insolvent, and then<\/em> take advantage.<\/p>\n

As they say, assets return to their rightful<\/em> owners. Capitalism will prevail until liberals extinguish it’s last breath.<\/p>\n

Now you know why TARP has done nothing to free up credit and get banks lending again.<\/p>\n

…and why government intervention in a free market is almost always a bad idea.<\/p>\n","protected":false},"excerpt":{"rendered":"

TARP money is being distributed to banks as we speak, and more is on the way. Sounds like a plan, right? Anyone want to borrow money at 10-12%? …when Treasuries are in the tank? Didn’t think so. But\u00a0 Obama wants to force banks to lend these dollars. The $350 billion second half of the federal […]<\/p>\n","protected":false},"author":228,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-4117","post","type-post","status-publish","format-standard","hentry","category-socialism"],"_links":{"self":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/4117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/228"}],"replies":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4117"}],"version-history":[{"count":0,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/4117\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4117"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}