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NEW YORK (CNNMoney.com) -- Two years after the $700 billion Troubled Asset Relief Program was launched, the Congressional Budget Office now estimates the government's economic rescue package will cost taxpayers $25 billion.

In its fourth statutory report on TARP, the CBO said the remaining costs mainly stem from the bailout of insurance giant AIG and the auto industry, as well as efforts to prevent foreclosures. Those programs cost about $45 billion, while other transactions resulted in a net gain of $20 billion for taxpayers.

http://money.cnn.com/...

This is down from an estimate of $113B in cost from just May.  Now, it's just about the cost of a month of the Iraq war.

This was the way that we hoped TARP would work.  

I don't know exactly what happened to Ireland.   But our banking crisis got fixed, with some movement towards reform.  Our auto industry was saved, hopefully in a longer run.  

Compared to the tax cut for the upper incomes insisted on by the GOP, which, coincidentally, would be $700B for ten years, it's an economic and equity success story.  

Originally posted to Inland on Wed Dec 01, 2010 at 10:36 AM PST.

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Comment Preferences

  •  Tip Jar (14+ / 0-)

    Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

    by Inland on Wed Dec 01, 2010 at 10:36:37 AM PST

    •  Bernanke tells us, today, this diary's bullshit... (1+ / 0-)
      Recommended by:
      Fossil

      "Fed Names Recipients of $3.3 Trillion In Aid During Crisis"

      By Craig Torres and Scott Lanman - Wed Dec 01 17:49:08 GMT 2010

      The Federal Reserve, under orders from Congress, today named the counterparties of about 21,000 transactions from $3.3 trillion in aid provided to stem the worst financial panic since the Great Depression.

      Bank of America Corp. and Wells Fargo & Co. were among the biggest borrowers from one program, the Term Auction Facility, with as much as $45 billion apiece. Some aid went to U.S. units of foreign institutions, including Switzerland's UBS AG, France's Societe Generale and Germany's Dresdner Bank AG. The Fed posted the data on its website to comply with a provision in July's Dodd-Frank law overhauling financial regulation.

      "The Federal Reserve followed sound risk-management practices in administering all of these programs, incurred no credit losses on programs that have been wound down and expects to incur no credit losses" on those that remain, the central bank said in a statement in Washington...

      Just looking at the Fed, Fannie, and Freddie subsidies, alone, tells us there are trillions of U.S. taxpayer dollars that have taken a hit to the tune of many, many hundreds of billions, alone.

      My diary, today, currently on the Rec List, demonstrates there are trillions in hidden losses still to be uncovered.

      Essentially, IMHO, this diary is little more than a lameass parrotting of a bullshit Wall Street meme.

      Your sentence towards the end of your post is indicative of the absurd position of your entire post, IMHO...


      ...But our banking crisis got fixed, with some movement towards reform...

      Main Street disintegrates while Wall Street doesn't miss a meal nor a bonus check.

      Yeah, IMHO, this post is shameful, if for nothing other than it's pathetic timing.

      "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

      by bobswern on Wed Dec 01, 2010 at 10:48:59 AM PST

      [ Parent ]

      •  The $20-$30 billion in annual free interest... (2+ / 0-)
        Recommended by:
        Fossil, Willa Rogers
        ...paid for by taxpayers to the Primary Dealers, while their taxpayer cash sits on deposit, instead of being pushed out to Main Street in various forms of credit, means that this $25 billion dollar claim is, in fact, DOUBLED every 12 months this--one of many--hidden bailout programs is in place.

        Again, refer to comment, above, and my diary today, for other forms of bailouts, amounting to trillions of dollars, currently out there, which Bernanke fails to reference in his comments, today, as well.

        "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

        by bobswern on Wed Dec 01, 2010 at 10:54:57 AM PST

        [ Parent ]

      •  Ya beat me to it, Bob. (1+ / 0-)
        Recommended by:
        bobswern

        People need to look into FNMA and FNMC and the black hole for taxpayer's money that these have become.

        Distrust of authority should be the first civic duty. - Norman Douglas

        by Fossil on Wed Dec 01, 2010 at 10:55:10 AM PST

        [ Parent ]

      •  And you fuck up another program. (1+ / 0-)
        Recommended by:
        Onomastic

        You keep making the same mistake, and I wouldn't blame you for it, if not for the fact that you keep jumping into things you don't understand without even reading your own posts.

        First, those are different programs.

        Second,

        "The Federal Reserve followed sound risk-management practices in administering all of these programs, incurred no credit losses on programs that have been wound down and expects to incur no credit losses"

        But you list it as 3.3 Trillion, including the MONEY THATS NEVER BEEN PAID OUT, MONEY THAT'S BEEN PAID BACK, and MONEY WE EXPECT BACK.  Same way you fucked up your TARP analysis by, oh, six hundred BILLION dollars.

        How many times did it take for me to get you to stop using the $2.3 Trillion figure for bailouts?  Ten?  Twenty?

        Now you're one third MORE WRONG.

        Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

        by Inland on Wed Dec 01, 2010 at 11:02:10 AM PST

        [ Parent ]

        •  Yet bush bites tells us that Obama won't (2+ / 0-)
          Recommended by:
          Onomastic, BarackStarObama

          credit...but his own "supporters" refuse to give him credit where it's due!!

          Even if Gibbs/Obama put out a statement to the same effect as the diary, these commenters here would dismiss it.

        •  The only thing "fucked-up" is your misdirection... (2+ / 0-)
          Recommended by:
          Fossil, Aeolos
          ...in this diary.

          The subsidies for Fannie, Freddie, etc. are "projected" to be "paid back" when, exactly? 10 years, 100 years from now? Most of the losses on that paper, and much of the mortgage paper at the TBTF banks have not even been acknowledged...and, all this as the housing market continues its downward trajectory as we blog.

          Tell me, what do you think happens to an economy when more and more of its middle class ends up underwater on their primary investment, their homes?

          And, spare me the bullshit, since the banks are the ones that realize the immediate gains from mortgage transactions, in this most quintessential example regarding Wall Street's efforts to privatize their profits while they continue to socialize their losses to the government-sponsored enterprises that now support close to 100% of the overall housing market in this country, today.

          Wall Street makes money coming and going. And, when that becomes problematic, they (our government, which is bought and paid for by Wall Street, from the get-go) either change the rules of basic math and accounting, or they simply break the law, fully aware that the only consequence of that bogus charade will be a tiny fine, equivalent to a small fraction of their profits.

          "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

          by bobswern on Wed Dec 01, 2010 at 11:13:35 AM PST

          [ Parent ]

          •  Now you're moving to another program. (1+ / 0-)
            Recommended by:
            Onomastic

            So you can double count the losses there, too.

            The subsidies for Fannie, Freddie, etc. are "projected" to be "paid back" when, exactly? 10 years, 100 years from now?

            Don't know, but I do know this: You'll count it as zero being paid back, even after it's paid back.

            Because you think "bailout" includes money THAT NEVER LEFT THE FED OR THE TREASURY.

            You don't understand what a line of credit is, much less what it means when the line expires, unused.

            Do you have a credit card?  A checking account?

            Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

            by Inland on Wed Dec 01, 2010 at 11:16:58 AM PST

            [ Parent ]

  •  that's like what, 2 entire NASAs? (2+ / 0-)
    Recommended by:
    HeavyJ, Onomastic

    not bad.

    It's like we're all part of some avant-garde role playing story called "The Election" by Franz Kafka.

    by terrypinder on Wed Dec 01, 2010 at 10:41:05 AM PST

  •  TARP was needed.. (7+ / 0-)

    whether the people here want to admit it or not.

  •  Obama won't get credit for this. (0+ / 0-)

    Mainly because he won't TAKE credit for it and his White House team doesn't know how to communicate beyond having Gibbs mumble a few words to the lazy White House Press Corp.

    I, for one, welcome our new hillbilly overlords.

    by Bush Bites on Wed Dec 01, 2010 at 10:46:41 AM PST

  •  The reason this is a lie. (1+ / 0-)
    Recommended by:
    HeavyJ

    Is that the losses are being hidden in FNMA and FNMC.

    The federal bailout for Fannie Mae and Freddie Mac could more than double in size during the next three years, according to projections from the companies’ federal regulator.

    Fannie and Freddie, the federally-controlled mortgage finance giants, will likely need at least another $73 billion and perhaps as much $215 billion from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said.

    And, these entities, holding the troubled assets in TARP, paying par for paper that is actually worth cents on the dollar, are for all intents and purposes, insolvent.

    So, how about not being so gullible.

    Distrust of authority should be the first civic duty. - Norman Douglas

    by Fossil on Wed Dec 01, 2010 at 10:53:59 AM PST

    •  You may not realize that the F/F "bailout" is not (1+ / 0-)
      Recommended by:
      Onomastic

      part of TARP. Both companies are in receivership, their stock has been wiped out and the Federal government is now making good on securities they issued or guaranteed. The net cost of that action will not be known until the mortgages underlying the securities are repaid. But as of now, the government is receiving dividends on its investment.

      You might consider apologizing to the person you called gullible.

      •  Part of the same "Balloon" (1+ / 0-)
        Recommended by:
        Gary Norton

        Paulson could not use TARP directly for the purchase of bad paper, so he decided to use FNMA and FNMC.  At that time:

        "Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.

        Fannie and Freddie began notifying bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, according to the people, who asked not to be identified because the plans are confidential. The purchases would be separate from the U.S. Treasury's $700 billion Troubled Asset Relief Program.

        You are correct, but both are battles in the same war of privatizing profit and socializing loss.  It is easy to lump it all together in terms of strategy.

        And this is not over by a long shot.

        The federal regulator overseeing Fannie Mae and Freddie Mac hired a law firm specializing in litigation as the agency considers how to move forward with efforts to recoup billions of dollars on soured mortgage-backed securities purchased from banks and Wall Street firms.

        The Federal Housing Finance Agency, which in July issued 64 subpoenas to issuers of mortgage securities, bank servicing companies and other entities, is working with Quinn Emanuel Urquhart & Sullivan LLP, a Los Angeles-based firm that specializes in business litigation, to coordinate its investigations.

        The banks are going to be stuck with marking to market one way or another.  So, it is yet to be seen whether TARP and sons of TARP just kicked the can down the road, extending the time that the looting of America by the 1 percenters can continue.

        Distrust of authority should be the first civic duty. - Norman Douglas

        by Fossil on Wed Dec 01, 2010 at 12:28:25 PM PST

        [ Parent ]

  •  The only big downside (1+ / 0-)
    Recommended by:
    Gary Norton

    is that by taking us back from the brink, TARP allowed a political environment to develop in which the measures required to complete the recovery appear to be impossible to enact.

    FSM I hate Republicans, and the media that enables their deceit.

    •  Like bobswern, for example. (1+ / 0-)
      Recommended by:
      Pozzo

      His breathless bullshit of trillions of bailout dollars to banks feeds teabagger hysteria.

      Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

      by Inland on Wed Dec 01, 2010 at 11:04:52 AM PST

      [ Parent ]

      •  no it doesn't (3+ / 0-)
        Recommended by:
        Fossil, Onomastic, Aeolos

        First, it's not

        breathless bullshit

        and second, it doesn't

        feeds teabagger hysteria

        In case you're unfamiliar, some of us have been decrying corporate welfare since back before the 'tea party' meant Ron Paul's protest GOP convention in 2008. The teabaggers weren't even around when the Fed ignored financial crimes, bailed out Bear Stearns, or gave ridiculously generous terms to AIG's creditors.

        Ask your Member of Congress what they're doing to put Americans back to work.

        by washunate on Wed Dec 01, 2010 at 11:10:13 AM PST

        [ Parent ]

        •  It's both. Here's another example: (1+ / 0-)
          Recommended by:
          Onomastic

          bailed out Bear Stearns

          From the wiki.

          The company could not be saved, however, and was sold to JP Morgan Chase for as low as ten dollars per share, a price far below the 52-week high of $133.20 per share, traded before the crisis, although not as low as the two dollars per share originally agreed upon by Bear Stearns and JP Morgan Chase.[2]

          Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

          by Inland on Wed Dec 01, 2010 at 11:14:18 AM PST

          [ Parent ]

          •  wow, that's your defense? (1+ / 0-)
            Recommended by:
            Aeolos

            The Federal Reserve gives money (specifically, loan guarantees) to Dimon's JP to buy Bear at an artificially inflated price?

            You want me to embrace that kind of disgusting corporate welfare?

            I suppose you also thought the Fed should have provided loan guarantees for Exxon to buy Enron? How about for AT&T to buy WorldCom? How about for Best Buy to buy Circuit City?

            You're either talking about a subject with which you're not familiar, or you are being deceitful and hoping I don't know enough to call you out on it.

            Well, here's an Irish descendant who knows the problem in both countries is simple. The private financial markets went berserk, and naturally, they want the public to cover their butts.

            I mean, heck, I would, too, if I were Jamie Dimon or Lloyd Blankfein or Hank Paulson and so on.

            Ask your Member of Congress what they're doing to put Americans back to work.

            by washunate on Wed Dec 01, 2010 at 11:34:25 AM PST

            [ Parent ]

        •  Some of us have been decrying corporate welfare (1+ / 0-)
          Recommended by:
          washunate

          since before the Reagan administration, when in 1972 the meme of CEOs being rewarded for stock price rather than being treated as mere administrative professionals was taking hold.

          Not that it matters to those who fail to see how TARP rewards wealth to the detriment of labor.

          Distrust of authority should be the first civic duty. - Norman Douglas

          by Fossil on Wed Dec 01, 2010 at 11:17:22 AM PST

          [ Parent ]

  •  care to elaborate on the banking crisis bit? (1+ / 0-)
    Recommended by:
    HeavyJ

    But our banking crisis got fixed

    I'm curious what you mean by that? We've been bailing out financial firms for over three years, and there seems no end in sight. Was that just a casual remark, or are you arguing we can now remove all special concessions for the big financial firms?

    Ask your Member of Congress what they're doing to put Americans back to work.

    by washunate on Wed Dec 01, 2010 at 11:06:44 AM PST

    •  Care to tell me what you're talking about? (2+ / 0-)
      Recommended by:
      Gary Norton, Onomastic

      We've been bailing out financial firms for over three years, and there seems no end in sight.

      An end is right there.

      This diary is about the end of one of the programs to bail out financial firms.  It's now a program to bail out car companies, for the most part.

      If you don't remember the banking crisis, then you can go back to Fall 2008 and about the time Lehmann crashed. It's all on the internet.

      Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

      by Inland on Wed Dec 01, 2010 at 11:12:32 AM PST

      [ Parent ]

      •  um, are you unaware? (0+ / 0-)

        Are you talking about our banking system and don't know what's going on?

        In no particular order:

        1. Fannie unlimited backstop
        1. Freddie unlimited backstop
        1. accounting changes
        1. low interest rates
        1. regulatory forbearance
        1. various Fed lending/swap facilities
        1. lack of criminal investigations for a broad range of financial activities

        Goldman, Citi, JP, Wells Fargo, and Bank of America have serious questions about their financial stability and viability absent the various ongoing backstops/protections from the Fed, Treasury, HUD, FDIC, DOJ, SEC, FASB, and elsewhere.

        I'm not predicting they would all go bankrupt. I'm saying we're still bailing them out through a variety of mechanisms today because our political leaders claim/think saving those firms is the same thing as saving the system.

        I don't think we should use taxpayer dollars to make investors in mortgage-backed securities whole, for example. But apparently other people do, because each quarter we give money to Freddie and Fannie so they can give that money to investors in the overpriced securities.

        Ask your Member of Congress what they're doing to put Americans back to work.

        by washunate on Wed Dec 01, 2010 at 11:22:16 AM PST

        [ Parent ]

  •  Citigroup May Hire Orzag (0+ / 0-)

    http://noir.bloomberg.com/...

    A job well done. Now we know who he was working for.

    I think I'll take a break from politics for a while.

  •  Ya know - my negative comments notwithstanding (2+ / 0-)
    Recommended by:
    washunate, Aeolos

    I would have no issue with well directed management of the public's money in any of this.  What I expected, and what I had commented about in the past was:

    - nationalization of the banks.

    - division of those TBTF into investment and commercial banking.

    - dismissal of and holding their administration and boards of directors responsible - including disgorgement of assets and profits.

    - use of public funds to force buyback of securities from pension and other investors limited to AAA risk.

    - the burden of loss to be carried by the TBTF bondholders and sovereign wealth entities.

    But nope, Obama will not course correct and just extends and pretends using accounting that would make Enron proud.

    Distrust of authority should be the first civic duty. - Norman Douglas

    by Fossil on Wed Dec 01, 2010 at 11:33:55 AM PST

  •  no coincidence (2+ / 0-)
    Recommended by:
    Fossil, Aeolos

    that there's a big austerity push here, same reason as in ireland, they want to use the unwashed masses to pay for their bailouts over the next few decades. Only 25 billion? Total amount was closer to 3 trillion as the fed admits today, and you really want me to believe it was all paid back in only 2 years, especially 2 years of a horrible economy? And they kept paying bonuses? Where'd they get the money from so quick? Fed print it out for them?

  •  How nice for the banks (1+ / 0-)
    Recommended by:
    Onomastic

    Weren't they supposed to spend $75 billion from TARP for the HAMP program?

  •  Of course you don't understand Ireland. (1+ / 0-)
    Recommended by:
    Fossil

    How did they're banking situation get so fucked up and we're on easy street?

    How about they can't print their own money.

    We can.  We can extend and pretend.

    This is not rocket science, Inland.  It's like having daddy's credit card but daddy is actually your children and their grandchildren.

    We at the moment have a direct credit line to our crack dealers in China.
    We turn and rotate bond sales at the primary dealers back into windfall sales at the FED.  We being Wall Street.

    You don't know what you're talking about when you can't even address the FASB situation of mark to fantasy and the mortgage putbacks that will sink not just a few holding companies.

    The fact of the matter is that $12 trillion was thrown at this crisis through direct loan facilities (TALF), equity purchases (TARP 2.0), guarantees, MSB purchases of QE1 and now QE2 and direct bailouts of AIG and counterparties.

    •  Well, you had one coherent point: (0+ / 0-)

      we can do stuff with our fed that a smaller country tied to the euro can't.

      Don't like how your congressman votes? You could write him, or you could write an open letter to Michelle Obama.

      by Inland on Wed Dec 01, 2010 at 12:07:36 PM PST

      [ Parent ]

      •  Well at least you can apprehend that. (0+ / 0-)

        It's the main point.

        We're not a quarter of the way through this crisis.

        Get back to us in, oh about five years on whether our TBTF's are solvent.

      •  And try to make believe you know the difference (1+ / 0-)
        Recommended by:
        Onomastic

        between an insolvent financial sector and a sovereign debt crisis.

        Ireland bailed out their private banks and now they need the equivalent of $7 trillion (if they had our GDP) to appease the bondholders of their debt.
        They need to borrow it from outside their economy - can't print it.

        Imagine that.  $7 trillion.  Now reverse engineer that and assume our banks were leveraged around 30% and had a much bigger international footprint in MBS and $12 trillion doesn't sound so fanciful does it for the total price tag of the U.S. bailout.

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