Friday, October 15, 2010
Like it or not, Under George W. Bush TARP Worked
Understanding the political climate, it is easy to associate TARP with big government. Well, the $700 billion Troubled Asset Relief Program (TARP) under George W. Bush expired last week and the result ended up costing the American taxpayer nothing or far less than it was anticipated. Originally expected to cost the U.S. Government $356 billion, the most recent final net estimate of the cost, as of October 5, 2010, will be close to $30 billion, including expected returns from interest in AIG.
For those ignorant and closed-minded, Bush did not use all of the $700 billion to bail out the banks, insurance companies (AIG), and the auto industry. Actually, Bush said he would only use half and the other half would be appropriated if necessary by Congress. Therefore, Bush only used $387 billion of the TARP which saved the failing financial system. The Treasury said that the worst-case assumption taxpayers would lose less than $50 billion. But if the TARP wasn't initiated, this country would have seen absorbent higher deficits and higher unemployment than what we have today. With the big banks, AIG, and the auto-industry paying back the loan with interest, the best-case assumption is that we can actually break even.
Even though the TARP program is a big loser politically, the final cost is less than expected amid the crisis. Finally, it should put to rest that you cannot blame Bush on the deficit. It is Obamas economy now. You can blame everything on him!
Read Story: TARP Bailout to Cost Less Than Once Anticipated