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Extension Of TARP Now Official: TARP Maturity To Suspiciously Coincide With Mid-Term Elections

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Wed, 12/09/2009 - 11:08 | 157810 mr brincq
mr brincq's picture

with what fairytale does the "recovery church" now come up with to support these markets....I will wait patiently on the sideline...

Wed, 12/09/2009 - 11:54 | 157886 Divided States ...
Divided States of America's picture

None of those dipshits should have the word HONORABLE in front of their names. Makes me effin sick.

 

Thu, 12/10/2009 - 02:09 | 158688 john bougerel
john bougerel's picture

"These policies (read slush funds) are working."

 

Remember TARP was to buy "troubled assets" not inject capital willy-nilly into bankrupt and insolvent financial firms. The initial goal was to "save the banking system" the latter goal was to save the banksters. HUGE DIFFERENCE not just in short term outcomes but in long term outcomes for which the American public will pay dearly for Paulson's ginormous indiscretion

Wed, 12/09/2009 - 11:14 | 157817 ChickenTeriyakiBoy
Wed, 12/09/2009 - 11:17 | 157818 Chumly
Chumly's picture

The same clowns who brought about the disaster claim to have saved us from it.

The only thing TTT will have to do next year is change the date on the letter to "October 3, 2011" and add $100 billion here and subtract $100 billion there.

Wed, 12/09/2009 - 11:16 | 157819 aint no fortuna...
aint no fortunate son's picture

"This extension is necessary to assist American families and stabilize financial markets because it will, among other things, enable us to continue to implement programs that address housing markets and the needs of small businesses..."

Hmm, how noble... to assist American families and small businesses... so, that's what they've been doing... I was kinda curious about their motives there for awhile but that clears it up just fine. 

OK folks, move on...

Wed, 12/09/2009 - 11:35 | 157853 tip e. canoe
tip e. canoe's picture

"to assist American families and small businesses..."

...by encouraging them to take on more debt...

Wed, 12/09/2009 - 13:10 | 157983 Assetman
Assetman's picture

Wasn't TARP orginally designed to purchase auctioned toxic assets in the financial system?  And then it was actually used... for what?

So now... we are being led to believe that TARP will be used for American families and small businesses.  Yet, the original $700 billion remains in place to make sure the TBTF's get their next capital injections when needed.

Who does Turbo Timmy think he is fooling?

Oh, yeah-- nevermind-- it's CONgress.

 

Wed, 12/09/2009 - 14:00 | 158027 digalert
digalert's picture

It's TOXIC

TTGeithner: "TARP will be refocused to aid homeowners facing foreclosure"

This was sold as a family foreclosure saving measure. It's amazing how memories work and these beliefs tend to follow party lines. Everyone, CONgress, talks like this was a bank rescue bill, when at the time only shifty Paulson and bubble Ben knew this was a bank buddy rescue fund.

Toxic turned troubled turned legacy loans, BBBernanke puts $500 bil on a swift boat to foreign banks never to be seen again, AIG, GM, FNM, FRE, MBS... blah blah blah

Here we are a year later and the tax cheat say's we need to help the families in foreclosure. While CONgress (screw the taxpayer) say's we need this slush fund for job creation (magic) and anywhere else we may have bungled and need to cover up.

To further help you forget, let us never use HAMP, HARP, HOPE...in the same discussion with TARP because we know how well that is working.

Wed, 12/09/2009 - 11:16 | 157820 Selah
Selah's picture

Why does Barney Frank have "Honorable" in front of his name?

And why wasn't Dean Martin CC'd?

Wed, 12/09/2009 - 11:31 | 157845 TumblingDice
TumblingDice's picture

This is not a surprise.

Wed, 12/09/2009 - 11:33 | 157850 Anonymous
Anonymous's picture

There is nothing honorable about Harry Reid. He has a legitimate chance to be judged by history as the most foul, self centered, and damaging politician in American history...it's a three horse race between him, Pelosi, and Jesus Obama for that title.

Wed, 12/09/2009 - 11:34 | 157852 Anonymous
Anonymous's picture

Also, a majority of the Recovery Act funds remain to be disbursed:

http://www.cnsnews.com/news/article/57617
http://www.gao.gov/new.items/d10223.pdf

- Heretic

Wed, 12/09/2009 - 11:39 | 157863 Mad Max
Mad Max's picture

I want to see this run through ZH's fraudspeak-to-truth translator.

Wed, 12/09/2009 - 11:42 | 157866 Anonymous
Anonymous's picture

In a letter to House and Senate leaders, Geithner said the extension is "necessary to assist American families and stabilize financial markets." Timmy

"The recovery of our financial system remains incomplete," Geithner told lawmakers. "And, near-term shocks to that system could undermine the economic recovery we have seen to do." Timmy

Get ready for a big bang. I smell trouble lurking.

Wed, 12/09/2009 - 22:39 | 158538 TheGoodDoctor
TheGoodDoctor's picture

From what I heard from Bob Chapman is that FASB is requiring the banks go back to mark to market at the beginning of next year. 1/1/10.

Also, they will require any loans to be capitalized with 50% cash and 50% collateral to the total of 125% of the loan or no loan.

Now what I am fearing is that they pass the health care bill before the end of the year with some crazy shit on the end of it regarding 401k's, IRA's etc.

I also read that Pelosi is looking to tack on a repeal of the Bush tax cuts ASAP.

Can anyone confirm or deny these items?

Wed, 12/09/2009 - 11:46 | 157873 Ragnarok
Ragnarok's picture

Does thid still have to be voted on?  If so won't there be a shit tonne of opposition? I mean they still haven't raised the debt ceilling yet for fear of backlash before getting healthcare passed (which is looking more likely everyday).

Wed, 12/09/2009 - 12:04 | 157895 Cursive
Cursive's picture

According to his letter, Geithner has the authority under the law to extend it without further Congressional approval.  I found this to be the most interesting part of the letter since TARP has always been a Trojan Horse of sorts:

"Finally, we may increase our commitment to the Term Asset-Backed Securities Loan Facility (TALF), which is improving securitization markets that facilitate consumer and small business loans, as well as commercial mortgage loans.  We expect that increasing our commitment to TALF would not result in additional cost to taxpayers."

 

Wed, 12/09/2009 - 12:05 | 157902 docj
docj's picture

What makes you think that this Administration has any intention, or even inclination, of bring CONgress on board for this?  I mean, the EPA is now going to regulate the products of respiration without so much as a debate on crap-n-tax.  I doubt they have any concerns about the extra-Constitutional prolonging this never-really-above-board piece of "legislation".

Wed, 12/09/2009 - 12:52 | 157955 Ragnarok
Ragnarok's picture

I thought I felt something poking me in the ass..... thanks for the clarification.

Wed, 12/09/2009 - 11:55 | 157887 Anonymous
Anonymous's picture

From the President's speech yesterday:

"So to help support these efforts, we’re going to wind down the Troubled Asset Relief Program, or TARP – the fund created to stabilize the financial system so banks would lend again."

From Timmay's letter today:

"While we are extending the $700 billion program, we do not expect to deploy more than $550 billion."

I remember reading somewhere that whatever President Obama says it is a good bet to expect that the intent is the exact opposite.

This is not only about the midterms but also about TALF and CMBS as Timmay so eloquently states.

Is any of this a surprise, it shouldn't be, so the question is how does one play this for maximum profit.

Wed, 12/09/2009 - 12:01 | 157896 Anonymous
Anonymous's picture

Can someone please tell me why no one in congress will ask the most obvious question.

If the Economy is recovering. Then why do we need to extend these programs? Please someone ask the question.

Wed, 12/09/2009 - 12:11 | 157909 Taxmetodeath
Taxmetodeath's picture

Can someone please tell me why no one in congress will ask the most obvious question.

If the Economy is recovering. Then why do we need to extend these programs? Please someone ask the question.

 

Wed, 12/09/2009 - 12:31 | 157919 Silver-Is-Better
Silver-Is-Better's picture

Can someone please tell me why no one in congress will ask the most obvious question.

If the Economy is recovering. Then why do we need to extend these programs? Please someone ask the question.

They are afraid to ask the question, for they know the answer already.

Wed, 12/09/2009 - 12:38 | 157931 Anonymous
Anonymous's picture

Tim probably doesn't have the authority to extend the program. Only congress does but if congress doesn't want a new debate then extend and pretend you have the authority.

Wed, 12/09/2009 - 12:46 | 157945 Guy Fawkes
Guy Fawkes's picture

Failure! ... giant, ass-sucking failure.

The taxpayer gave Wall Streets biggest banks money with which to gamble. Some still loss while others invested and made money. Woo Hoo ... so fucking what. Wall Street generating positive cash flow is nothing new.

The problem is still the toxic debt which has not gone away. It has been transfered to the Fed's balance sheet in exchange for UST or still sits on the banks balance sheets at 100 cents on the $. It has not gone away! It is only by FASB accounting gimmicks that they have not collapsed under the weight of their unbridled greed.

 

Wed, 12/09/2009 - 12:48 | 157948 JR
JR's picture

Will the real chief executive please stand up?  Is it the Senator from Illinois who was elected last November?  Or is it someone else whose message Timothy Geithner brings to us in the name of Barack Obama?  Just who is using Mr. Obama’s name to take taxpayer money and give it to_________?  (Fill in the blank.)

Wed, 12/09/2009 - 13:03 | 157967 Mad Max
Mad Max's picture

The "chief executive" is not the partial-term Senator from Hawaii/Indonesia/Nawlins on the Lake.  Who exactly he/she is isn't clear, but if you look at billionaires who contributed to his campaign you might start getting some ideas.

Wed, 12/09/2009 - 12:53 | 157957 Anonymous
Anonymous's picture

The 'Taxpayer Ass Raping Program' or 'Toxic Asset Relief Program' or whatever they want to call it has become such a clusterfuck that even 'ole Hank what be impressed by what it has morphed into. I listened to damned near every hearing on this last fall in both the house and senate; TARP was going to be used exclusively to relieve the banks of their 'toxic assets'. Has that even happened? As far as I know, they are still there, waiting for their 'real value' to be recognized. These toxic assets had value, maybe in some alternate universe, and their price just hadn't been discovered yet.

Instead, they just shoveled the TARP money over to the banks in order for them to use to recapitalize themselves. Then it was used to bail out two auto companies that should have been put to rest years ago. Now it is going to be used to 'create jobs'.

I just don't even know what to say anymore.... Just when you begin to think that the ship is about to right itself, this group of jokers we have in office find another means to extend the charade a little bit longer. I wish I had the kind of 'jack' Cash-n-carry has so I could build my own retreat away from this madness, because when this all blows-up, the shock waves are going to be epic.

Wed, 12/09/2009 - 13:36 | 158005 Anonymous
Anonymous's picture

If Corzine couldn't buy an election in N.J. what makes them think it's gonna work in 2010.

Wed, 12/09/2009 - 13:38 | 158007 JR
JR's picture

It’s going to break!  The reason the Fed/Treasury is continuing TARP is because they’re under water.  And it’s getting deeper and deeper and they don’t know what to do.  You know how bad it is? Multiply everything they say by 10.

It’s like a giant iceberg and they’re only chipping away at the top.  They have a massive crisis that now extends to the rest of world.  Otherwise, they would not be taking chances of going deeper and deeper into the economic abyss, of getting people angrier and angrier.  The whole country is turning against them, as well as other nations.  In Britain the people are so opposed to the bailouts that benefit the bankers that they’ve demanded a tax on banker bonuses and pushed parliament into it. 

It’s the government and the bankers working together that have created this. And it’s getting worse.  They are developing a public relations problem you can’t believe.  Why are several politicians all of a sudden speaking out against Bernanke? Why would any politician berate such a kindly, gentle man?  Why don’t the people love someone who’s kept them out of another Great Depression?  It’s because the politicians’ constituents are pushing them and beating them around the head. Every time the government/bankers say they have worked out a program, an agreement, that’s going to do more and cost less, the people know they’re going to get cheated. After a while the people just won’t take it anymore.

The bankers and the Obama Administration have a whale underneath the Good Ship Lollipop. Something’s going to break

Wed, 12/09/2009 - 15:10 | 158138 trav777
trav777's picture

they are keeping TARP open because there is no political will for another "Porkulus" bill in the trillion dollar range.

They had 2 9-figure appropriations in the span of a few months, and the people can still do basic math.

Everyone has this sense that we're bankrupt, but wait till it percolates up into the higher consciousness.

Wed, 12/09/2009 - 19:18 | 158378 Anonymous
Anonymous's picture

I think the "threat" is indeed that posited in the article.
It's time to rush everything that can (still) be gotten with a 60 vote Senate and a compliant House.
After 2010, the Dems will still have the White House and the media. The 2 houses of CONgress are in doubt.

Wed, 12/09/2009 - 20:21 | 158419 Zippyin Annapolis
Zippyin Annapolis's picture

What ever happened to the awful CRE  problem? Did Valerie Jarret fix that when no one was looking?

Thu, 12/10/2009 - 21:16 | 159674 rayen36
rayen36's picture

Timothy Fuckmythroat Geithner

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