Barney Frank: Let's spend TARP profits...

[PPGMD]

http://www.washingtonexaminer.com/op...-49649362.html

When President Obama announced on June 9 that some financial institutions would be allowed to repay Troubled Asset Relief Program dollars, he said the massively expensive TARP bailout had made money for the federal government. "It is worth noting that in the first round of repayments from these [TARP recipients], the government has actually turned a profit," the president said. Indeed, TARP supporters have long held out the hope that the program might be profitable.

But now Rep. Barney Frank, the chairman of the House Financial Services Committee, has come up with a proposal to spend any TARP profits before they can be returned to the taxpayers. Last Friday, Frank introduced the "TARP for Main Street Act of 2009," a bill that would take profits from the program and immediately redirect them toward housing proposals favored by Frank and some fellow Democrats.

In exchange for receiving TARP money, financial institutions were required to hand over shares of preferred stock that paid a dividend for the government. In theory, if a financial institution paid the dividend faithfully, and then repaid the TARP money, then the government would turn a profit. Last month, the General Accountability Office (GAO) reported that, through June 12, 2009, the government had received $6.2 billion in dividend payments. The original TARP legislation required that money made from the program "shall be paid into the general fund of the Treasury for reduction of the public debt."

So instead of using the money to pay down the national debt (like was proposed) lets spend spend some more.

For the record, I supported TARP, I disagreed how the money was managed after it was passed, but I supported the program as it was proposed, being limited to banks only.

[TampaDude]

Gotta spend it...them niggaz need their methadone...

[Joe]

Again... When will people learn???

Fiscally Responsible != Politician who promises to be....

[LuckyH]

Saw this on GB yesterday.

http://www.youtube.com/watch?v=K5p9N1J1vvU

[XYNaPSE]

HAHAHAHHA!!! I remmeber like it was yesterday when I said that this spending would turn a profit. Then there were those usual idiots, who frequent this forum so much, that laughed at me and said how outrageous that thought was. Who's laughing now?

[Joe]

Originally Posted by XYNaPSE

HAHAHAHHA!!! I remmeber like it was yesterday when I said that this spending would turn a profit. Then there were those usual idiots, who frequent this forum so much, that laughed at me and said how outrageous that thought was. Who's laughing now?

Seriously....

You're laughing about the politicians taking these "profits" and spending them without any regard for the HUGE MUTHAF_KING DEFICIT we are piling up?


BTW, How many BILLIONS of the TARP funds are still outstanding?

[Zealot]

Originally Posted by Joe

BTW, How many BILLIONS of the TARP funds are still outstanding?

Exactly.

[BigBadBuick]

Originally Posted by XYNaPSE

HAHAHAHHA!!! I remmeber like it was yesterday when I said that this spending would turn a profit. Then there were those usual idiots, who frequent this forum so much, that laughed at me and said how outrageous that thought was. Who's laughing now?

You make my fucking head hurt.

Let's say I borrow $500 from your mom and then loan 5 random users each $100 and they all agree to pay me back with $50 interest.

I stand to make $250 because your mom only wants the cock, she doesn't expect me to pay her any interest.

Two people pay me back next week, early, with interest.

Technically, even though I'm still $200 in the hole, I have turned a profit on the money that has been paid back. It's a lie, there isn't a profit if you factor in the money still outstanding, but boy, it sure makes me sound smart.

But the lie isn't enough, I take the extra money and give it to the guy on the corner with the "will work for food" sign. I feel better about myself, I get to tell everyone else what a great person I am, and people that think like you call me a hero. At the end of the day he buys a bottle of wine, some crack, and ends up dying from an overdose. I don't have shit to show for the money except I still owe your mom $300 and some dick.

[Joe]

BBB, maybe he can understand it better in those terms....

[dink921]

Originally Posted by BigBadBuick

Y
But the lie isn't enough, I take the extra money and give it to the guy on the corner with the "will work for food" sign. I feel better about myself, I get to tell everyone else what a great person I am, and people that think like you call me a hero. At the end of the day he buys a bottle of wine, some crack, and ends up dying from an overdose. At the end of the day I don't have shit to show for the money except I still owe your mom $300 and some dick.

you just stimulated the economy by giving him money to buy meth, booze and such.. you also took him out of the social security, medicare and universal healthcare equation...gj at saving the tax payers thousands.... and id say keep that other 300$ for after u dick her cuz u may need to visit the walkin clinic.... sounds like a hero in my book, you just used $500 to save thousands, make 250$ profit and help a homeless guy enjoy his last day on earth...

[BigBadBuick]

Originally Posted by dink921

you just stimulated the economy by giving him money to buy meth, booze and such.. you also took him out of the social security, medicare and universal healthcare equation...gj at saving the tax payers thousands.... and id say keep that other 300$ for after u dick her cuz u may need to visit the walkin clinic.... sounds like a hero in my book, you just used $500 to save thousands, make 250$ profit and help a homeless guy enjoy his last day on earth...

[blacksheep-1]

Good call BBB and it looks liek Dink might end up being a closet conservative.

[2MuchDuctTape]

Originally Posted by XYNaPSE

HAHAHAHHA!!! I remmeber like it was yesterday when I said that this spending would turn a profit. Then there were those usual idiots, who frequent this forum so much, that laughed at me and said how outrageous that thought was. Who's laughing now?

So do you support Barney Frank wanting to spend the money or not?

[XYNaPSE]

Originally Posted by 2MuchDuctTape

So do you support Barney Frank wanting to spend the money or not?

lol Whether it's used to pay down debt or for creating a more stable housing market I'm all for it. Either way the debt gets paid through direct or indirect payments.

[Josh]

Originally Posted by XYNaPSE

lol Whether it's used to pay down debt or for creating a more stable housing market I'm all for it. Either way the debt gets paid through direct or indirect payments.

christ you don't have a clue.

[XYNaPSE]

Originally Posted by Josh

christ you don't have a clue.

Oh and how is that?

[Josh]

Originally Posted by XYNaPSE

Oh and why is that?

because you have absolutely no idea what you're talking about. things don't work like that...at all!

stabilize the housing market? it can't be done at these prices. you can't keep the bubble prices but go back to lending without gimmicks. the only reason these prices were affordable was because of the lacks lending standards. so the obvious solution, since we all want prudent lending standards again, would be low prices. you can't force lenders to make more risky loans when they just got smacked very harshly - and if they did make the risky loans, isn't that what got us into this mess? so why would we want to repeat it? you're still so completely clueless.

it doesn't matter what we try to spend this money on, the losses will still be there, and they will always be there until the debt is liquidated and the assets are recapitalized. will people lose a lot of money they think they had? absolutely, but bubble prices are a distortion of the fundamental value of the asset and those prices dont represent real wealth or a realistic outlook at the future value of the asset. in a speculative mania, prices become disconnected from reality and get bid up with cheap credit - the fed made it available. it can't last forever, and it's just asinine that you think the conditions that lead to the bubble are the solution and it just shows how little you know about finance.

[Rich]

Originally Posted by XYNaPSE

HAHAHAHHA!!! I remmeber like it was yesterday when I said that this spending would turn a profit. Then there were those usual idiots, who frequent this forum so much, that laughed at me and said how outrageous that thought was. Who's laughing now?

My Car Wash loses $200/day but my Oil Change Center makes $1/day. My company is profitable.

Nobody is laughing with you.

[XYNaPSE]

Originally Posted by Josh

because you have absolutely no idea what you're talking about. things don't work like that...at all!

stabilize the housing market? it can't be done at these prices. you can't keep the bubble prices but go back to lending without gimmicks. the only reason these prices were affordable was because of the lacks lending standards. so the obvious solution, since we all want prudent lending standards again, would be low prices. you can't force lenders to make more risky loans when they just got smacked very harshly - and if they did make the risky loans, isn't that what got us into this mess? so why would we want to repeat it? you're still so completely clueless.

it doesn't matter what we try to spend this money on, the losses will still be there, and they will always be there until the debt is liquidated and the assets are recapitalized. will people lose a lot of money they think they had? absolutely, but bubble prices are a distortion of the fundamental value of the asset and those prices dont represent real wealth or a realistic outlook at the future value of the asset. in a speculative mania, prices become disconnected from reality and get bid up with cheap credit - the fed made it available. it can't last forever, and it's just asinine that you think the conditions that lead to the bubble are the solution and it just shows how little you know about finance.

Um $6 billion would help out greatly and also help the economy in turn generating more revenue to pay off debt. $6 billion wouldn't put a dent in the debt we have so why not invest? Meh.... you don't even understand the basics so how would anyone expect you to understand this?

[XYNaPSE]

Originally Posted by Rich

My Car Wash loses $200/day but my Oil Change Center makes $1/day. My company is profitable.

Nobody is laughing with you.

Stuuupid...


The first round of TARP payback has made a profit. I don't expect it with every round but this is definately a good sign.