Tales from the Trail

A TARP by any other name…

November 18, 2008

WASHINGTON – TARP, the four-letter acronym for a $700 billion government bailout, has lost its original definition and needs a new name.

Even the White House on Tuesday acknowledged that TARP was perhaps not the most accurate portrayal of the changing intent of the financial rescue package.

After all, Treasury Secretary Henry Paulson last week said the Troubled Assets Relief Program would not be used for troubled asset relief but rather to shore up financial firms.

“Shouldn’t we stop calling it TARP, since it’s not really any more a troubled asset relief program?” a reporter asked at the daily White House briefing.

“Yes, I have thought the same myself,” White House spokeswoman Dana Perino said.

“I don’t know what we could call it. I also call it the rescue package. It’s not a bad point,” she conceded.

Paulson said he was backing away from using the bailout fund for buying troubled mortgage assets and now instead favored using the money to inject capital into financial institutions.

Hmmmm… Perhaps it is time for a new name.

Some off-the-cuff suggestions include CYA for Cover Your Assets, ILL for Inject Lender Liquidity, EWAPOM for Everyone Wants A Piece Of Me, or WHW for Whatever Hank Wants.

But we’d like to open this up to suggestions from our readers. Let’s hear from you.

Comments
14 comments so far | RSS Comments RSS

Government bailout? That’s what the businesses that stand to gain by it want you to believe! This is big business bailout through our lazy fair govt. It is big business that is wineing and dining govt policy makers to come to their disgusting position… bail us out even though we are the root cause of doing bad business, and, oh, by the way, make sure nothing is said regarding us having to pay it back. Let the slaves/citizens of this nation pay it for us because they are the vermin that we have been kicking around for years. Don’t you know we of the royality deserve this bailout and the pheasants can eat crow?

 

The bailout is a necessary evil. No, we the citizens don’t want to pay for it, and no, we don’t want to see it happen again. Measures will have to be taken to prevent this crisis from occurring again, and to be sure that we aren’t going to be bailing out any big business every time they screw up.

What we, the citizens, CANNOT suffer is a collapse of our major banks and lending industry. This would be a catastrophic economic failure that would leave us all hurting a LOT more than we will under the burden of this bailout plan. We rely on a strong, healthy competition between these major banks to provide us with reasonable rates on loans for our houses, our cars, our investments. Should they collapse and fail, we will be the ones to suffer for it.

Posted by Sean | Report as abusive
 

My acronym is FILTH:
Federally
Institutionalized
Looting
Thanks
Hank

 

The Banks are being bailed out but so should the people who are crying out for help and getting very little assistance. Foreclosures are not good for anyone; Its a lose/lose situation. If a reduction in principal and interest rate for homeowners will make a payment affordable and prevent a foreclosure in a market were values are declining significantly due to the foreclosures, it makes sense to do the reductions and stop the loses. Every foreclosures reduces home values and the Lenders recover less money than if they had of found a long-term affordable payment arrangement in lieu of foreclosure. Not helping the American people in this crisis has caused a trickle down effect resulting in a weak economy. Helping the American people will result in a trickle up effect creating a stronger economy. As we have seen, when the people lose their homes and go broke so does the economy. Help the American people and the American people will help the economy.

Posted by Valery | Report as abusive
 

It’s not TARP anymore, It’s BADKARMA!

Bailouts
Arguably
Designed to
Keep
America’s
Rich
Moguls
Appeased

 

I still think the FDIC has come up with the most viable plan to date.

Posted by Jordan | Report as abusive
 

I do not believe that the American people would have voted for a $700 Billion bailout if we knew it was just to shore up the Banks and not save our homes if it was in any way feasible. I thought it was illegal to “bait and switch”. The new name should be the “BS” money for bait and switch a.k.a. bullsh__ money.

Posted by Valery | Report as abusive
 

Government’s job is to grow. They just keep finding new ways to do it. The cost of the beaurocarcy that will result from all these bailouts will dwarf $700,000,000,000. That’s allot of Zeros.

Posted by Norx | Report as abusive
 

Welcome to MATH CLASS. Take $700 billion, and divide it by the number of households in America. Divide that amount by 12. Mail each household a check for that amount every month for the next year. This is the bottom-up solution America needs, not rewarding the fat cats at the top of the food chain. Mortgage payments can be made, food put on our tables, and jobs kept, which is what main street needs. After all, it is OUR tax money being doled out, shouldn’t WE decide where to spend it??

Posted by turismo | Report as abusive
 

A lot of the big three autos and parts are made in Mexico…so why dont they ask Mexico for a bail out.

Posted by old ewok | Report as abusive
 

If the Auto industry wants part of the bail out I have no problem with my tax dollars helping with a few conditions. The Auto bail out should be set up like our grant system and watched quarterly.
First – Every Auto production plant in South America will have to be shut down with in 12 months.(requiring domestic production )
Secondly- Every part manufacturer world wide will have to be shut down in 12 months.(requiring domestic production )
Thirdly- There will be and excutive pay cap and a bonuses will be based on preformance percentages only.
Distrubution- The money will be given in 4 installments. During which proof of the conditions are met each quarter, remaining monies will be distributed. If any of these 3 conditions are not met the remaining monies will be held. The monies previously imbursed will be held by freezing all foriegn and domestic bank accounts of said Auto manufacturer until reimbursed back to the US goverment.

 

Please DO NOT give these guys a bail-out. All that does is reward incompetence. Toyota and Honda are not going bankrupt. And this is NOT because they have better engineers or production workers. It is because they have superior management. These guys actually earn the money that they are paid by making smart decisions and guiding their companies towards the products and technologies that they need to meet the demands of the future. Our big three are mid evil in their management and vision. If they need a “hand-out, they should ask the oil companies. Certainly these two big businesses have watched out for their own interests to the exclusion of what is good for America. By giving the same upper management and same executives that have run the “big three” into the ground more money, you can be guaranteed that they will mismanage it as they have done for the last 40 years. You can’t make a “silk purse out of a sows ear”. This is especially true of GM. Please watch “Who Killed the Electric Car”, and then let’s talk about whether GM management deserves more money with which to make some more stupid decisions. The only hope for these “dinosaurs” is to clear out all of the executives and upper management (any manager who earns over $250K must go) and get someone new and fresh that wants to make cars that Americans need for the 21st century, instead of serving the status quo interests, especially those of “big oil”. Nothing can be accomplished without good leadership. Any order to help these companies out, the management must be purged, and they certainly will not purge themselves.

Posted by PTC | Report as abusive
 

ok first of all anything and every thing is going to look fishy with this $700 billion dollars cause thats a lot of f***ing money. if you tried to give all that money to the people there would be even more b***ing because the money would have to be distributed unevenly do to differences in mortgage payments. Everyone knows the money would sit still and not go anywhere on capital hill if we left it up to congress to fight over all of it. by the time they all finished getting a little peace of it their would be none left. i believe that when you are trying to fix a problem you need people like Paulson and Neel Kashkari who have been working on the mortgages crisis before anyone for saw this happening.
the time it would take for the trickle up affect to work and help the banks out that are failing it will be to late. there will probable be only a few banks left, probable foreign banks, in America and then they would own us all. their is no doubt that the banking system failed in America and around the world. if we don’t help them out there will def be repercussion for every American not just the ones that over budgeted their home mortgages.
from what i understand they are trying to work this deal for banks as best they can, by pretty much moving our free market economy faster. Paulson and his time have set up a system that is completely trickle up effect in business terms. they are asking the FDIC members of each banking region, the people that over see banks personally all the time, to evaluate their banks and decide which ones are capable of living or dieing so we do not through money to greedy people or stupid people, like the ones who were hurt the most by this cause of bad banking style.
as to banks buying other banks with the money the government gives them, when people think they should be lending it. it does not work like that when the whole financial system stops working no one is making money not even banks so in a sense they are losing money and are all in trouble. with the government giving the money to strong banks, those banks can then buy others and then when they get rolling again they are able to better help all of there customers in the future the new ones and old ones.

Posted by Patrick | Report as abusive
 

TARP = Terrorism and Racketeering Payments

Wall Street and fininical firms leveraged close to a trillion dollars at about 33:1. We’re about 33 trillion dollars in the hole. A few hundred billion or a few thousand billion in bailout money is not even a scratch at the tens of trillions that American capitalism has scammed? Should we expect other countries to happily pay 10% of their GNP for a decade to compensate for American greed?

Posted by Dave | Report as abusive
 

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