What would YOU say to the Oversight Committee if YOU were asked??

Discussion in 'Random Ramblings' started by I have WHAT in my yard?, Jan 16, 2011.

  1. I have WHAT in my yard?

    I have WHAT in my yard? Chillin' With My Peeps

    Jun 24, 2008
    Eggberg, PA
    Tarp was a huge and hugely controversial program that ended just this month. In theory anyway.

    Most people have very strong feelings about whether or not the TARP program “worked” . Did it save the country from financial ruin or did it drive the country into financial ruin?

    The problem is that the only people who really grasp the details seem to be the very people who benefitted from it. And, oddly it is pretty much only them who have been asked if TARP was successful.

    I think that the government needs to hear from a John Q. Citizen who is actually paying attention, on how the citizens feel about TARP.

    Its over, right? So who cares? Well, you should care. Because it might be “over”, but it is still winding down.

    If you could tell a congress member what you think of TARP, what would you say?

    If they asked you if it was “successful” What would you say?

    Research links if you want!!



    Tarp on the Even of its expiration

    The Congressional Oversight Panel's September oversight report, "Assessing the TARP on the Eve of Its Expiration," found that, although the Troubled Asset Relief Program (TARP) provided critical support to the financial markets at a time when market confidence was in freefall, the program has been far less effective in meeting its other statutory goals, such as supporting home values, retirement savings, and economic growth.
    Under its original authorization, the TARP would have expired at the end of 2009. Late last year, however, the Secretary of the Treasury exercised his legal authority to extend the program until October 3, 2010, the latest date authorized by statute. This month, in anticipation of the final expiration of the TARP's most significant authorities, the Panel explored the program's overall effectiveness.
    Although the TARP quelled the financial panic in the fall of 2008, severe economic weaknesses remain even today. Since the TARP was authorized in October of 2008, 7.1 million homeowners have received foreclosure notices. Since their pre-crisis peaks, home values have dropped 28 percent, and stock indices -- which indicate the health of many Americans' most significant investments for college and retirement -- have fallen 30 percent. Given that Treasury was mandated by law to use the TARP to address these measures of the economy, their lingering weakness is cause for concern.


    Taxpayers Now Appear Likely to Recover Billions More Than First Expected, but Conflicting Goals Have Impaired Accountability and Moral Hazard Lingers
    WASHINGTON, D.C. - The Congressional Oversight Panel today released its January oversight report, "An Update on TARP Support for the Domestic Automotive Industry." The Panel finds that, although it remains too early to tell whether Treasury's intervention in the U.S. automotive industry will prove successful, the government's ambitious actions appear to be on a promising course. Even so, the companies that received automotive bailout funds continue to face uncertain futures, taxpayers remain at financial risk, concerns remain about the transparency and accountability of Treasury's efforts, and moral hazard lingers as a long-run threat to the automotive industry and the broader economy.
    Since the Panel last reviewed the bailout of the domestic auto industry, the financial state of taxpayers' investments has improved starkly. At the time of the Panel's last comprehensive report on TARP automotive programs in September 2009, the Congressional Budget Office (CBO) estimated that taxpayers would lose $40 billion in the automotive industry. Today, CBO has reduced its loss estimate to $19 billion, and the three largest recipients of automotive bailout funds -- General Motors (GM), Chrysler, and GMAC/Ally Financial -- all appear to be on the path to financial stability.
    In each of its automotive bailouts, Treasury's goal of recovering taxpayer money has conflicted with its stance as a reluctant, "hands off" shareholder. With GM, Treasury sold 40% of its stake in the company very early, when the share price was 26% lower than needed to recover taxpayers' investment in full. With Chrysler, Treasury sold its position in Chrysler Financial so hastily that it may not have performed basic due diligence and may have left money on the table. With GMAC/Ally Financial, Treasury has maintained its position as a "hands off" shareholder even at the expense of profitability -- for example, by declining to urge GM to consider repurchasing GMAC/Ally Financial. In all of these cases, Treasury's decisions may well have been reasonable, but they illustrate the inherent conflicts in Treasury's stated goals for its automotive intervention. Virtually any action may be defended as either improving taxpayers' returns or maintaining a "hands off" approach, and as a result, it is difficult for any outside observer to judge whether Treasury's results in fact qualify as successful.
    Treasury is now on course to recover the majority of its automotive investments within the next few years, but the impact of its actions will reverberate for much longer. Treasury's rescue suggested that any large American corporation -- even if it is not a bank -- may be considered "too big to fail" if its collapse would eliminate enough jobs and wreak enough economic damage. As a result, the automotive rescue creates a risk that moral hazard will infect areas of the economy far beyond the financial system. Further, the fact that the government helped absorb the consequences of GM's and Chrysler's failures has put more competently managed automotive companies at a disadvantage. For these reasons, the effects of Treasury's intervention will linger long after taxpayers have sold their last share of stock in the automotive industry.
    The full report is available at cop.senate.gov.
    The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and to provide recommendations on regulatory reform. The Panel members are former Senator Ted Kaufman; J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO; and Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky.
    January 13, 2011
    For Immediate Release


    NPR review of TARP when it actually expired.


    A more conservative view of Tarp yet from outside the banking industry.

    (Please be nice and follow forum guidelines!!! We have been able to have some very good discussions recently lets try to keep it up!)
  2. Omran

    Omran Chillin' With My Peeps

    Jul 26, 2008
    Bagdad KY
    Since the Gov started all this programs, I never seen one singel thing was helpful for me or any of my friends, Infact they are making things worse.
    I don't think it need a smart human to figure things out, Economy grows when the industry is growing period, so if we are not producing here in the USA that means China will grow and we will just stay sitting and getting Fat watching TV.
    And Yes we need to manifacture even the smallest things. Infact if it is up to me I will Tax every singel item comes from China with 300%. and any Car made out side the USA.
    Here In the USA we really can depends on ourselves for almost everything, but we need a wake up and a strong education to educate not only in schools but every where else.
    I know a lot of you will argue with me just because (some ppl that all what they do ) but deep in your heart you know exactely what I mean.
  3. Tony O

    Tony O Chillin' With My Peeps

    Yes, if we tax all incoming items to equal, or above the cost of American made items, we would make many new jobs available here at home. [​IMG] Nuff said!
  4. kitchwitch

    kitchwitch Chillin' With My Peeps

    Feb 3, 2009
    Greensburg, Pa
    In other interesting news there's some work being done on a local road or somesuch and it's all federally funded...blah blah blah BUT they're using illegal aliens for the work! [​IMG]
    Some of the aliens got busted by immigration and it made the news that they were working on a federally funded project. Way to be on the ball with providing AMERICANS jobs...
  5. Mahonri

    Mahonri Urban Desert Chicken Enthusiast Premium Member

    May 14, 2008
    North Phoenix
    My Coop
    I am not better off because of tarp.

    Big surprise.
  6. mgw

    mgw Chillin' With My Peeps

    May 29, 2010
    Eastern Wa.
    I think I would say to them " YOUR FIRED".
  7. easttxchick

    easttxchick Lone Star Call Ducks

    Aug 3, 2009
    Two words, MASSIVE FAIL.
    I'd be happy to get a REAL tarp out of the deal-at least that would be of some tangible value to me. [​IMG]
  8. Dunkopf

    Dunkopf Chillin' With My Peeps

    Sep 24, 2010
    Kiowa, Colorado
    Sounds like they will get most of the money back. However it didn't seem to help anyone except the banks and Wall Street. I heard that most of the money was borrowed at 1% interest or less and reinvested by the banks into safe loans at around 3%. So they used our money to put more money in the pockets of the banks, while millions lost their homes.

    I'm not happy. Of course I'm just a mushroom.
  9. mgw

    mgw Chillin' With My Peeps

    May 29, 2010
    Eastern Wa.
    Quote:We are all mushrooms!!
    ETA. If you want to know what's going on you have to go to wikileaks lol!!
    Last edited: Jan 16, 2011
  10. elizabethbinary

    elizabethbinary Chillin' With My Peeps

    Mar 22, 2010
    Brisbane, Australia
    Oooh this sounds interesting and something I can read about to learn something new and get my mind off things... can someone tell me where I can read more about this tarp program and what it does - in nice easy slow people words?

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