What is truly frightening is that they really have no idea whether this plan will work at all (except no one can really tell us what happened to the first $350 Billion of the TARP fund except that they gave it away to a bunch of banks who won't say where it went and also to GM.)
It isn't as if there will be an opportunity to take the same amount of money (we already don't have) and spend it somewhere else when somebody discovers that it really should have been spent doing something else.
I have to wonder whether the funds would have been better spent setting up completely new and unencumbered financial institutions, free from troubled banks with troubled assets and able to provide lending to creditworthy businesses on rational and defensible valuations of borrowers' assets.
What is truly frightening is that they really have no idea whether this plan will work at all (except no one can really tell us what happened to the first $350 Billion of the TARP fund except that they gave it away to a bunch of banks who won't say where it went and also to GM.)
ReplyDeleteIt isn't as if there will be an opportunity to take the same amount of money (we already don't have) and spend it somewhere else when somebody discovers that it really should have been spent doing something else.
I have to wonder whether the funds would have been better spent setting up completely new and unencumbered financial institutions, free from troubled banks with troubled assets and able to provide lending to creditworthy businesses on rational and defensible valuations of borrowers' assets.
I could spend 1.5 billion responsibly.
ReplyDelete