TARP extension

Discussion in 'Politics' started by D_Stanford Dedwillie III, Dec 9, 2009.

  1. D_Stanford Dedwillie III

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    TARP is being extended for U.S. banks.

    I was under the understanding that this was created to get us through the crisis at the onset. It was supposed to be paid back to the taxpayers at the end of 2009.

    Now it seems like its more of a political slush fund.

    It did save some banks, but not sure if it really ever benefited main street America.
     
  2. Industrialsize

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    The point of the extension is to help Main Street:
    During his jobs speech Tuesday, Obama said untapped TARP money can be used to reduce the deficit and help small businesses. He said the program is expected to cost $200 billion less than once thought, in addition to the repayments by banks and other financial institution that got TARP money.
    "This gives us a chance to pay down the deficit faster than we thought possible and to shift funds that would have gone to help the banks on Wall Street to help create jobs on Main Street," Obama said.

    Obama, Republicans and the battle over TARP - The Oval: Tracking the Obama presidency
     
  3. D_Stanford Dedwillie III

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    Industrial, do you know if there are any details relating to how the loans will be extended to the small businesses? That sounds nice, but I think in the real world the small businesses (even if they do get the loans - which I don't think they will) will use funds to pay down outstanding debt and a/p and provide a cushion unless there is another slowdown in business. I don't think many will go right out and start hiring.

    Unless the administration puts some kind of directive on lending to small businesses, the banks will probably continue to do what they have been doing - just sitting on the cash to firm up their balance sheets.

    Oh well. I guess we'll see.
     
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