Wednesday, December 9, 2009

Do we need to waste any more money?

Treasury Secretary Timothy Geithner has just announced that he is extending the Troubled Assets Relief Program (TARP) till October of 2010. This is the 700 billion dollar program that was set up to bail-out banks from their toxic assets. The program was set to expire on 12/31/09 unless the administration decided to extend it.

Some banks have been paying back the TARP funds (with interest) and other institutions are in the process of doing the same. Seems that we currently have about $200 billion dollars currently in the TARP fund. Instead of using it to pay down our massive debt, the President wants to use it to stimulate job creation.

I suspect a more sinister use of the TARP money. I don't think it's coincidental that the extension of the program ends right before the 2010 November elections.

$200 billion makes for quite a nice political slush fund. By targeting these "job stimulus dollars", to congressional districts that may be at risk, the Obama Administration can help Democrats get re-elected. This is an especially nice carrot to wave in front of "Blue Dogs" that may take a lot of heat for voting for the health-care and cap and trade bills.

The $200 billion will take "Chicago-Style" politics to the National level.

Then again, I may just be a cynic.

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