Comments on: Are Americans really benefitting from TARP repayments? http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/ Wed, 16 Jul 2014 00:47:01 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Laster http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-908 Wed, 08 Jun 2011 01:59:49 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-908 Good article Chris.

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By: Syzygy http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-900 Sun, 05 Jun 2011 07:20:36 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-900 My reaction is “Are Americans really benefiting from George Whalen’s analysis of TARP”?

He factually mistates the size of the TARP authorization. See http://blogs.forbes.com/brianwingfield/2 010/10/04/do-tarp-re-payments-reduce-the -deficit/ to understand how the authorization has evolved. It ultimately became less than half the 1 trillion dollars he quotes in the blog above.

He asks has America benefitted by selling TARP related assets to which I reply how would America be better off if the assets were not sold to recover our money.

Finally he conflates Fed policy with a specific legislative act (TARP) and arrives at the conclusion that TARP is bad because Federal Reserve policy has hurt Americans (arguably a good point but not relevant for a TARP discussion)

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By: ohyeah23 http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-894 Tue, 31 May 2011 17:48:45 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-894 Hey wait, doesn’t Chris work at AIG? Didn’t AIG get TARP money? Of course he’d write an article saying that they shouldn’t pay it back.

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By: 1stspock http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-893 Tue, 31 May 2011 00:29:14 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-893 Would I be considered an objective bobble-head if I believed in the prophet Ayn?

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By: kruk http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-892 Mon, 30 May 2011 20:44:27 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-892 Chris,

This is a very enlightening piece. Have you done any work that suggests that charging the banks merchant banking rates on what was essentially mezzanine financing would have caused the money center banks to try to produce higher returns on capital and thereby stimulate the loan market?

What is the current state of the FDIC loans that never get media attention? It seems that the bankers paid themselves first, 2009 bonuses, and then went into an interest rate and commodities trading and arbitrage mode and are now hoarding capital and hoping for growth while preparing for the inevitable.

If the banks were forced to keep the capital unless and until they could pay back the taxpayers at commercial IRR’s would this have forced some discipline and growth?

Also, how does the FED fit into the picture now? Is the FED required to send back to the Treasury the near 100 billion dollars in profit it will likely make this year, or will this spread income be used to make additional purchases in a QE3 lite? How is the FED & Treasury regulated in this regard?

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By: BajaArizona http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-891 Mon, 30 May 2011 17:09:11 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-891 TARP disrupted a vicious cycle that threatened every corporation, every industry, every nation. TARP was costly. But in any such article which seeks a thorough accounting for every possible penny spent, whether real or in future earnings, the fact that we are not talking about the Second Great Depression right now is most attributable to one program: TARP, with the stimulus bill a distant second.

TARP didn’t come close to giving us a shiny new economy. It did keep the battered one we had from driving straight off a cliff. That’s another huge success for government rescuing feckless businesses and greed drunk markets, a narrative some ideologues can’t accept under any circumstances. Not even it’s their rich behinds which where saved most.

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By: AlBarrs http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-889 Mon, 30 May 2011 12:15:13 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-889 The American people have NOT benefited from the TARP, or the Obama Stimulus money, it is us who paid it! We are far worse off! The Obama stimulus money went to political payoffs for Obama…unions, donors, supporters…not the business people who could have put it to the use it was promised…more hypocrisy and lies from our spinner-in-chief.

Al Barrs, A Herman Cain Supporter
Bascom, Florida
albarrs@wfeca.net

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By: cosmicinsight http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-887 Mon, 30 May 2011 04:30:10 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-887 The author is right,it requires courage and understanding on the part of political leaders to have ensured that the public loans to save the financial institutions from imminent collapse came with a strong mandate to restructure and reform.Instead the ‘too big to fail’ even have gotten bigger.Emboldened to use the largesse to save their hides and then to speculate to get out of the mess they have put themselves and the rest of us in.But the mess seems to be not easily mend able even after printing and putting trillions of dollars at the markets disposal.

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By: CDN_Rebel http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-886 Mon, 30 May 2011 01:50:48 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-886 I didn’t read the article – I don’t think I need to. Basically, something went marginally okay for the Obama administration and so the right-wing has to spin the news or change frame-of-reference to try and tear it down. I get it, and it’s such a bloody waste one wonders how you sleep at night. I don’t scorn you for having different economic ideologies, but for using distasteful and disreputable tactics to undermine public trust. As far as I can tell, there hasn’t been a single scandal from Obama that could even come close to several incidents under Bush2 or Clinton (ie the first time in 16 years)… and frankly Reagan’s administration was fraught with scandal as well. Is that why opponents of Obama have to invent facts to try and bring him down?

All I will say is that you drag Obama down for not reigniting the economy fast enough, but in the same breath complain that he didn’t smash the economy and rebuild it from scratch, causing depression not just in America but likely all over the world. Pick one and roll with it, don’t be so hypocritical

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By: Ransomexx http://blogs.reuters.com/christopher-whalen/2011/05/26/are-americans-really-benefitting-from-tarp-repayments/comment-page-1/#comment-885 Sun, 29 May 2011 23:24:19 +0000 http://blogs.reuters.com/christopher-whalen/?p=403#comment-885 We have gone from a liquidity crisis to a velocity crisis. TARP did not address homeowner debt or unemployment. Most likely the Treasury and Fed believe they have restored liquidity, employment is a fiscal problem. Unfortunately we have entered a condition identified by Irving Fisher as debt deflation, where in the process of resolving debt, indebtedness increases, primarily because the value of collateral continues to collapse. With 10 million homeowners underwater, we have a velocity problem that is increasing daily while we focus on austerity measures, Medicare vouchers for the under 55 crowd, an issue ten years in the future. The only solution is to accelerate employment and keep people in their homes (and off the market), neither of which are under consideration.

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