Financial rescue (TARP) cost under 1 percent of GDP: Geithner

[Still a Democrat]

Source: Reuters

The U.S. government's financial rescue efforts will cost less than 1 percent of gross domestic product, considerably below past systemic crises, U.S. Treasury Secretary Timothy Geithner said on Thursday.

Geithner told a bailout watchdog group the Treasury expects to earn a positive return on its remaining support for banks, automakers, credit markets and American International Group as part of the $700 billion Troubled Asset Relief Program.

...

Read more: http://www.reuters.com/article/idUSTRE6BF2ZB20101216

[Crazy Dave]

1. I guess Bush was right then huh?

TARP was the creation and rushed through with fear during and under the Bush administration, not Obama's.

[On the Road]

4. This is Probably the Only Thing Bush Did That I Supported

The cost of paying FDIC insurance alone would have been an order of magnitude greater than the losses from AIG and several smaller banks. And the uninsured losses on business accounts would have made it impossible for companies to write payroll checks. That is more than enough to push the system over the edge.

Congressional Republicans, amazingly, were so clueless they were fighting for that very scenario to go ahead. It took Democratic support for it to pass.

[Still a Democrat]

7. One of the few for me as well

The alternative was far worse. Ironically, it took the opposition party to get the voted to save us from the catastrophe Bush started.

[SkyDaddy7]

12. However, Bush just tossed the Banks 350 BILLION...

It was Obama & his administration who managed this positive turnout! NO ONE EXPECTED THIS OUTCOME, NO ONE!

Thank-you President Obama!

[No Elephants]

20. Yes, but there should have been more conditions.

[DallasNE]

16. It Got Of To A Rocky Start

Because controls were not built into it so nobody knew where the money went. It was really Obama's administration of TARP that made it the success that it has been. I also recall that when Bush brought in both Obama and McCain for input that Obama asked several questions about the plan and McCain sat there silently, without saying a word. Later McCain would speak out against the plan he voted for -- but that's McCain for you.

[No Elephants]

19. Obama wanted it, though--and he told Bush to release the second part

Bush said he would not release it unless Obama told him to. Cagey.

[naaman fletcher]

2. BS

Phony accounting. taxpayers are taking it on the chin. pro publica and others have documented this BS accounting. what has happened is simply the biggest heist in the history of the world.

[Ikonoklast]

8. Really? Show the numbers.

Show that TARP lost money.

[Gormy Cuss]

9. Geithner said TARP will cost less than 1 percent of the GDP: That's cost, not profit.

Geithner's crowing because it didn't cost more.

[Ikonoklast]

10. The numbers between what it cost, and what not doing anything would have cost.

Letting the banking and credit system of this country completely fail is what would have happened, and there isn't a number big enough to put on that.

[naaman fletcher]

13. we dont know that number..

and besides, TARP wasn't the only option. The government could have kept the banks open while wiping out the equity holders and firing the executives who caused the problem, instead the government just handed them a bundle of cash and now they are paying themselves bigger bonuses than ever.

[Gormy Cuss]

17. Either way, the government lost money on the deal.

The only difference is how much. I believe that some intervention was needed. That isn't the issue IMHO. The issue is whether this was this structure was the best way to mitigate risk for the country. From the quotes in the article, Geithner seems to think that it was a good deal because it has cost less so far than the S & L bailout (and bailouts in other countries with different GDP inputs.) I remember a few months back when the news was about the earnings on TARP investments without regard to the fact that all those earnings didn't necessarily mean that the government would be paid back in full. IMHO Geithner is spinning the data again, focusing on how little is cost rather than talking up pay back rates.

[naaman fletcher]

14. google

goole "pro publica tarp"

[On the Road]

18. And I Suppose You Can at Least Give Some Clue

as to what money was supposedly stolen? A few small banks failed and did not repay the TARP money. The rest was returned with interest.

[No Elephants]

21. Google hidden costs of bailout

[Moostache]

3. And interest free loans to banks that then loan shark the public is great too!

Geithner and Paulson's actions are a gigantic dump taken squarely on the middle class and the future of this country.
You cannot pollute the air and foul the bowl, then grab the "Pinetree smell in a can" air freshner, spray it all over the place and say its all better now. Instead of smelling the shit, you smell a fake pine covered in shit.

[apnu]

6. Actually its the other way around...

...you'd smell shit covered in fake pine.

:hi:

[liberation]

5. Funny, no mention of the Fed's capital infusions which were an order of magnitude larger than TARP

at almost zero interest and with no oversight whatsoever. Ironically the fed did not return the favor by requiring the bonds, used to issue all that money, to have a similarly low interest rate.


But hey, if banks somehow do not get our money at zero interest, so that they can loan it back to us at usury rates... somehow the economy collapses. Man, that is such an awesome system, totally worth fighting to the death for.

[freshwest]

11. You Nailed It

Where's the outrage from the Tea Party?

[valerief]

15. It's not on Fox. nt