From Pine View Farm

Sinkholes 5

Bonddad on the TARP. After a detailed analysis, he concludes that:

My guess is that much of the anger over TARP has as much to do with how we got here rather than what is actually happening with the program. Put another way, there is understandable anger about the stupidity that has cost the US economy dearly over the last year. That anger is understandable. A perfect storm of lack of regulatory enforcement, greed and outright stupidity combined to place the US in the worst financial situation since the early parts of the Great Depression.

However, I would caution that the anger be stored away from the current discussion and instead brought out when we discuss reform which will be forthcoming. Right now the goal is to keep the economy moving — or, perhaps more precisely, to keep it from falling off a cliff. It’s a bit like lecturing a drunk driver while he’s in the emergency room; yes, he needs to be dealt with, but it’s more important at that time to keep him alive. That’s what we have to do right now — keep the economy alive.



  1. Karen

    January 23, 2009 at 2:01 pm

    They have dumped just how much into the banks to get them moving again & all they are doing is making themselves bigger. No loans are being made. Nothing is being done to get the economy moving again, because of the no-strings “bailout funds” they were given. Before they got that money, they used what they had to pay the execs their massive bonuses. It’s done no good as far as I can see, & the giants should be allowed to fail. I wouldn’t give them another dime without massive regulation about what they can & can’t do with it & if they don’t like that, then they can fix themselves. Or fail.

  2. Frank

    January 23, 2009 at 3:42 pm

    It is certainly difficult to accuse them of acting in good faith, isn’t it.

    The free hand of the market my assets.

    The free hand of Fagin is more like it.

  3. Karen

    January 23, 2009 at 6:57 pm

    Remember all the answers in Helen’s post? That’s what they can do.

  4. Frank

    January 23, 2009 at 7:07 pm


    Billions for banks. Not one cent for working persons.

  5. Karen

    January 26, 2009 at 10:50 am

    Carly Fiorina (sp) of HP (& $21 mil parachute) fame was on “This Week” Sunday. She pointed out that the banks who have received the money from the government have used it to make their balance sheets look better, to show viability. They are not lending. She also stated that any company who comes to the public watering hole should have to fire the CEO with no bonus, as they are the responsible parties.

    It was scary. She had a couple of good points, like no loans with no oversight. If they take it, they should be watched. Closly.