bobbyw24
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TARP: Taxpayers on the hook for $200 billion
Experts say the cost of the $700 billion bailout to taxpayers is a small price to pay for saving the economy. Others argue we are just staving off an inevitable collapse.
By David Goldman, CNNMoney.com staff writer
Last Updated: October 2, 2009: 7:46 AM ET
NEW YORK (CNNMoney.com) -- Taxpayers stand to lose between $100 billion and $200 billion on TARP -- Treasury's $700 billion financial market bailout.
While that's nothing to sneeze at, many experts say that the Troubled Asset Relief Program helped rescue the economy from a second Great Depression.
But there are others whoargue that the billions of dollars that taxpayers shelled out simply delayed an inevitable epic collapse of the financial sector.
A year ago, when the financial markets were in turmoil, the Bush administration and supporters in Congress said TARP would be used to buy banks' troubled assets, and would be an investment -- it could even turn a profit.
But TARP, which celebrates its first birthday on Oct. 3, has been used for many programs it was not initially intended for, like saving AIG, automakers and helping struggling homeowners.
Some quick math: Of the authorized $700 billion, the Treasury Dept. has needed to deploy only about $450 billion.
About half of that has gone to investments in hundreds of financial institutions in exchange for preferred shares. From
http://money.cnn.com/2009/10/02/news/economy/tarp_anniversary/index.htm?section=money_topstories
Experts say the cost of the $700 billion bailout to taxpayers is a small price to pay for saving the economy. Others argue we are just staving off an inevitable collapse.
By David Goldman, CNNMoney.com staff writer
Last Updated: October 2, 2009: 7:46 AM ET
NEW YORK (CNNMoney.com) -- Taxpayers stand to lose between $100 billion and $200 billion on TARP -- Treasury's $700 billion financial market bailout.
While that's nothing to sneeze at, many experts say that the Troubled Asset Relief Program helped rescue the economy from a second Great Depression.
But there are others whoargue that the billions of dollars that taxpayers shelled out simply delayed an inevitable epic collapse of the financial sector.
A year ago, when the financial markets were in turmoil, the Bush administration and supporters in Congress said TARP would be used to buy banks' troubled assets, and would be an investment -- it could even turn a profit.
But TARP, which celebrates its first birthday on Oct. 3, has been used for many programs it was not initially intended for, like saving AIG, automakers and helping struggling homeowners.
Some quick math: Of the authorized $700 billion, the Treasury Dept. has needed to deploy only about $450 billion.
About half of that has gone to investments in hundreds of financial institutions in exchange for preferred shares. From
http://money.cnn.com/2009/10/02/news/economy/tarp_anniversary/index.htm?section=money_topstories
