Government to Raid TARP to Fund Auto Bailout
Article Submitted By: Sam Cass
All major media are reporting that the Treasury has agreed to extend cash to the automakers via the TARP program. This is the worst of all possible solutions.
All major media are reporting that the Treasury has agreed to extend cash to the automakers via the TARP program. This is the worst of all possible solutions. It significantly undermines the TARP program and sets a precedent of anyone having access to TARP funds.
The merits of a bailout of the automakers can be discussed, but if one agress there should be a bailout (and the Senate discussed this and decided there should not be at this moment) then the money should be given the right way. Even not so right ways are better than taking money from the TARP. There is $25 billion available via a fuel efficency program funded by the Department of Energy. There is also billions of dollars in cash available in employee pentions that could be used as a source of collateral for private loans.
A recession/depression is bad enough but the breakdown in government that seems to be occurring is even worse.
