An Accounting of TARP

Who decides what is best for the public or in the best interests of the public, Tim Geithner?  Because of the financial fiasco created by a Congress that allowed fannie mae and freddie mac run wild under the guise that housing was a right and not a privilege business’ were allowed to go wild in the secondary loan market.

However, the constitution provides the federal government with the authority to act and has allowed the abuse of power to continue by taking advantage to this financial disaster so that actions by the treasury department are given only through a verbal accounting that  has not been questioned. When the fox is guarding the hen house in an all democratic legislature and executive there are no checks and balances. What we have is violations of the constitution in an effort to serve a public interest that has led to nationalization of private business and the authority of the treasury department to pick and choose the winners and losers under the rubric of national security.  To take out and manipulate private businesses for the ideological good as seen by the liberal progressives now in control of freedom and liberty is contrary to the constitution.

Foreign investors are wary of the tidal wave of U.S. government bond issues flooding the market, as a result, treasury prices are plunging. The U.S. dollar has fallen to a six-month low and higher interest rates on bond issues make corporations ability to compete with the US government for capital a non starter.  This will slow any recovery to a snail’s pace and business’ unable to acquire capital are sure to be stepped on as will the economy due to Treasury Secretary Geithner spending proposals.

For the record here is a brief  verbal accounting of where Treasury Secretary Geithner has spend the TARP funds.  If and when taxpayers money is paid back where will it go?  What socialist program will it fund next?  Would Geithner ever consider paying off the principal of the National Debt, this would only be common sense and does not fit with the liberal progressive agenda of totalitarianism.

Where is Tarp Going

By WSJ Staff

In congressional testimony this morning, Treasury Secretary Tim Geithner outlined where TARP money has been allocated and how much is left. Here is Treasury’s estimate:

Projected Use of TARP/Financial Stability Plan Funds by Administration as of May 18, 2009

Programs Announced Under Previous Administration

AIG

$40 billion

Citi/Bank of America (TIP and Guarantees)

$52.5 billion

Autos

$24.9 billion

Capital Purchase Program

$218 billion

TALF 1.0

$20 billion

Subtotal

$355.4 billion

Programs Announced Under Obama Administration

Housing

$50 billion

AIG (Second Investment)

$30 billion

Auto Suppliers

$5 billion

Additional Autos

$10.9 billion

Expansion of Consumer and Business Lending Initiative *

TALF Asset Expansion (New Issuance) **

$35 billion

Unlocking SBA Lending Markets

$15 billion

Public Private Investment Program ***

TALF for Legacy Securities

$25 billion

Other PPIP Programs for Legacy Assets

$75 billion

Subtotal

$245.9 billion

Total Committed (Without Potential Repayments)

$601.3 billion

Total Remaining (Without Potential Repayments)

$98.7 billion

Conservative Estimate of Potential Repayments

$25 billion

Total Committed (Including Potential Repayments)

$576.3 billion

Total Remaining (Including Potential Repayments)

$123.7 billion

Additional Funding

Additional Support for the Auto Industry

Capital Assistance Program

* The Consumer and Business Lending Initiative also includes the $20 billion committed to TALF under the previous administration and the $25 billion committed to TALF for legacy securities under the PPIP, amounting to an overall total of $80 billion under TALF and $95 billion under the CBLI.

** New assets made eligible under the expansion of TALF include commercial mortgage-backed securities, mortgage servicing advances, loans or leases relating to business equipment, leases of vehicle fleets, and floor plan loans.

*** The Public-Private Investment Program was announced at a level of $75 to $100 billion, which includes $75 billion in additional resources for the PPIP program on top of $25 billion devoted to TALF for Legacy Securities.