Alright, so the news today is that the Obama administration has decided to spend another trillion dollars basically fulfilling the purpose of the original TARP (Troubled Asset Relief Program) money. It was originally created under the Bush administration to buy up the toxic foreclosure mortgages that have been clogging up the credit market, thus supposedly freeing up banks to continue to lend money. The money was never used for its original purpose, but now as the markets have shot up as a result one must wonder why the Bush administration never followed through with their plan and why the Obama administration took so long to unveil the details of their plan (and when they did so it was not really theirs). Even so, the long term impact of the most recent injection of taxpayer money is yet to be seen. How will it impact the economy alongside the $20 trillion in debt the US will have in about 10 years? Only time will tell.
Maybe next I'll try to answer the question of why we are even in this position in the first place...stay tuned!
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Yeah really, to put this into perspective even more, 1,000,000,000 is only one billion :)
ReplyDeleteThanks for the correction!
ReplyDeleteReminds me of Clinton getting the credit for the economic prosperity during his tenure, and Ronald Reagan getting credit for the hostages getting released. It was only Carter's ineptitude that delayed that.
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