Tag Archives | TARP

The Bank Bailout Was Actually $8 Trillion

largeAh, free-market capitalism — the economic system that works best, provided that one infuses $8 trillion to stave off total collapse. The Atlantic Wire writes:

Remember the $700 billion Troubled Asset Relief Program with which the federal government came to the rescue of faltering banks in 2008? Well, according to a Bloomberg report, that was just a fraction of the financial help the Federal Reserve Bank wound up doling out to troubled lenders. The real total was reportedly closer to $8 trillion, after you add up benefits outside TARP, including emergency loans given at below-market rates:

The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.” It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S.

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Robber Barons? Meet Robber TARP

The federal government’s TARP program was a cover for a massive income transfer from the productive to the unproductive classes in society, writes Jerry O’Driscoll for the Christian Science Monitor:

Bring back the Robber Barons. That is the title of yesterday’s “Wonderland” column by Daniel Henninger in the Wall Street Journal.

Henninger distinguishes between market entrepreneurs and political entrepreneurs. Market entrepreneurs innovate and create new products. Political entrepreneurs make money by gaming the political system. “We need vision, vitality and commercial moxie. The government is draining it away.”


The real cost of TARP and stimulus is the diversion of resources and talent from creating value into transferring money from one pocket to another.

The stimulus bill was a cover for a massive income transfer from the productive to the unproductive classes in society.

TARP transferred money from profitable firms and hardworking Americans to profligate bankers…

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