Wednesday, December 16, 2009, 11:28AM ET - U.S. Markets close in 4 hours and 32 minutes.
With the first half of the $700 billion TARP program nearly depleted, Treasury Secretary Hank Paulson spoke today to both defend the program, and announce some changes going forward.
Paulson's comments come amid criticism of his handling of the bailout and a political battle over whether the government should rescue U.S. automakers. Assuming the answer is "yes", the debate — starting as early as next week in a lame-duck session — will be over whether or not the funds come from the second $350 billion of TARP money, which requires Congressional authorization (however it's used.)
As for Paulson's defense of TARP: "As I assess where we are today, I believe we have taken the necessary steps to prevent a broad systemic event," Paulson said in prepared remarks. "Our system is stronger and more stable than just a few weeks ago. Although this is a major accomplishment, we have many challenges ahead of us."
Key changes to the program, which Paulson hopes will address the ongoing challenges of "a weak economy, especially the housing correction and lending contraction," include:
These changes appear smart, but the bottom line is the government is essentially making this bailout up as it goes along. "Since announcing the [injection of capital into big banks] we have been examining a wide range of ideas that can further strengthen the financial system and get lending going again to support the broader economy," Paulson said.
It's also clear that Paulson still doesn't have the answers ... and maybe not even a clue, which he unwittingly admitted today: "And to adequately reform our system, we must make sure we fully understand the nature of the problem which will not be possible until we are confident it is behind us," he said.
Huh? No wonder Paulson is counting down the days until he's "former Treasury Secretary."
Bailout loan should be called "in".....FOR BREACH OF LOAN TERMS
BAILOUT LOAN SHOULD BE CALL "IN"......FOR BREACH OF LOAN TERMS
Look out every one. The stock RALLY is just around the corner. Get in NOW. Do NOT listen to all the bad news out there!!!
LOL...Pietro, you sarcasm is impecable. LOL
THERE WON'T BE A TARP BIG ENOUGH TO COVER UP THE LIES AND MISAPPROPRIATIONS WHEN THE BAILOUT MONEY IS ALL SPENT
The world better PRAY that OIL prices don't go back up again! Because if you think that things and the economy are BAD NOW! Wait until the OIL PRICES start going back UP again. Then you will have the Mortgage problem, the WALL STREET/BAIL OUT problem AND you will ADD to it, the **(HIGH OIL PRICES)**! God help us! Once again, the RICH get richer and POOR take the hit, while the WALL STREET people are having drinks and sunning themselves on some ISLAND somewhere with YOUR money. Wise up people! The GAME will NEVER change! All they do is change the PLAYERS and the NAMES of the players. This BAIL out is necessary to prevent MORE JOBS from being lost. But the GOVT has to make SURE that BAIL out money is use to make the companies more **(EFFICIENT; and make and produce more REALIABLE and EFFICIENT and COMPETITIVE products that can compete WORLD wide, not just in America.)**
The world better PRAY that OIL prices don't go back up again! Because if you think that things and the economy are BAD NOW! Wait until the OIL PRICES start going back UP again. Then you will have the Mortgage problem, the WALL STREET/BAIL OUT problem AND you will ADD to it, the **(HIGH OIL PRICES)**! God help us! Once again, the RICH get richer and POOR take the hit, while the WALL STREET people are having drinks and sunning themselves on some ISLAND somewhere with YOUR money. Wise up people! The GAME will NEVER change! All they do is change the PLAYERS and the NAMES of the players. This BAIL out is necessary to prevent MORE JOBS from being lost. But the GOVT has to make SURE that BAIL out money is use to make the companies more **(EFFICIENT; and make and produce more REALIABLE and EFFICIENT and COMPETITIVE products that can compete WORLD wide, not just in America.)**
I believe bailout for just 2 mismanaged companies, AIG and C, could eventually top $3.5T. Total US bailout bill to recuse the entire economy? We are looking at about $10-15 T or more.
This is not a TARP----it's a giant PERSIAN that everyone wants to sweep stuff under----I think we should sweep the PUKSTER himself Paulson under the rug right now. What an idiot! After scaring the WORLD into truly irrational behavior to save his fraternity brothers(AKA Masters of the Universe) here we are redesigning the "Persian" while in the middle of the Rubicon. He needs to resign right now----that alone will move the market a thousand points!
Like a cat with nine lives, baby boomers are accustom to surviving economic down-cycles, and this continued soft landing is, in large part, owed to the vast majority of baby boomers being arm-chair economists; ignorance is bliss. History repeats itself, and like a Tsunami where all water is drained from shore, the smart cat runs to high ground and waits, while the curious cat follows the tide in search of easy prey, and the new cat builds seawalls. If the undercurrent is debt, equity and currencies, what is the rising tide? Based on your discussion here, are our eyes wide shut? Like smart cats, economists and bankers anticipate history, and gracefully move so as not to alarm anyone, or lead others to their new haven. A fat cat once shared, when you owe $1 million, you have a problem, but when you owe $1 billion your bank has a problem. No one knew this better than John Conolly, treasury secretary in the Nixon Administration. In 1971, after the US decoupled the dollar from gold, he bluntly said, "The dollar is our currency but their problem." Is history poised to repeat itself, if simply for a period until the dust settles? Prior to 1971, GOLD measured a man’s wealth, if not a nation’s wealth for thousands of years. You've heard of the 'possible' "W"-shaped 'recovery', what about the 'possible' "VL"-shaped recovery.
Maybe Paulson's not a communist after all. But keep an eye on this guy.
Paulson; listen to me... Help the people and you will help the economy. keep it simple. If the people are not spending the banks aren't lending. it doesn't work Top down, but bottom up. Climb the mountain don't leap from it, hoping for the best.
The latest survey shows that three out of four people make up 75% of the population.
The Constitution states that the Gov't will " provide for the general welfare..." This includes Post Offices, Courthouses, Schools, Roads, something that everyone benefits from. The bailout money was given to only a few. This bailout is patently unconstitutional and therefore illegal!!
"We can have only one president" - Obama. I'd like one, wouldn't you? Do we have to wait 67 more days? Bush is totally gone. He was gone 2 years ago, but he's not even showing up to work nowadays.
The truly wealthy in the world did not get that way by buying assets during boom times. They got rich when they bought at fire sale prices and then waited. This is the beginning of a new golden age of wealth.
Paulson is only being honest... he doesn't really know how the market will evolve and react to TARP and other external stimuli. And he knows and is telling us that he will have to rapidly evolve the program to suit conditions. BUT STILL - the bailout is doomed... the private market knows better and will stay away from TARP'd entities... there is no amount of money that can avoid the actual HUGE crash that is still imminent and not avoidable.
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Gusserson - Wednesday November 12, 2008 01:11PM EST
The Fundamentals of our economy are STRONG!