The special inspector general for TARP Niel Barofsky will testify Tuesday before the House Committee on Oversight and Government Reform. The office of the special inspector general was created to serve as an auditor of the federal bailout by the same legislation that launched the TARP program itself.
Originally, TARP was intended, Barofsky writes, to facilitate “the purchase, management, and sale of up to $700 billion of “toxic” assets, primarily troubled mortgages and mortgage-backed securities.”
But that plan was soon rejected, and the TARP instead became a grab bag of bailout initiatives, including bailouts for GM, Chrysler and auto parts suppliers as the federal government struggled in real time to contain a spiraling economic disaster.
Barofsky reports that TARP has come to include 12 separate programs that include a total of as much as $3 trillion, “including TARP funds, loans and guarantees from other agencies, and private money.” Of the initial $700 billion allocated by Congress, Barofsky found that the Treasury has so far announced how $643.1 billion will be spent, and it has actually spent $441 billion as of June 30
Barofsky’s calculation of a $23 trillion figure took into account a wide-ranging group of federal programs set up by disparate agencies within the federal bureaucracy. Secretary of Treasury, Timothy Geitner, will probably have him waterboarded for saying things like “Yeah, nobody at Treasury even knows where the banks put all that money we gave them.”
The special inspector general counted approximately 50 initiatives or programs launched since 2007 to fight the economic collapse.
The Federal Reserve, he found, has increased its balance sheet from $900 billion to more than $2 trillion, and Barofsky estimated that the total amount of support to the economy by the Fed. is at least $6.8 trillion, because it is exposed to significant losses if many of the assets guaranteed by the Fed deteriorate in value.
Barofsky points out the non-TARP programs, which are far larger than the TARP itself, do not come with the strings that the high-profile TARP money itself comes with, including executive compensation, and they don’t necessarily require congressional approval. And beyond the ability to tally their costs, Barofsky has no authority as an auditor over the non-TARP programs.
I believe that if your aim is to “remake America” as Obama has promised to do, you must first examine the following definitions. Then you will realize that the “CHANGE” is a radical turn toward socialism at the very least!
Socialism – when Government owns the means of production.
Fascism – When the Government controls the means of production.
Marxism – when the workers own the means of production
This quote by Obama illustrates that you can not judge a man by what he says, but what he has done and proposes to do.
Obama has said this: “I want to disabuse people of this notion that somehow we enjoy, you know, meddling in the private sector,” Any thoughtful person will quickly note that for a man who profess to not want to “meddle” in the private sector.His Health Care Plan, Cap and Trade, and take over of General Motors put the LIE to his protestations!
In particular, the actions in dealing with Chrysler and GM, this seems to be true. The main problem is, for those that believe in the Rule of Law, the Right to Private Property, in fairness and equality, and the free market of capitalism (which has created more wealth for more people than any other system in the world’s history!), this headline from John At Powerline seems to say it all.
“The Chrysler reorganization was another milestone in the decline of the rule of law under Barack Obama. We’ve said for quite a while that bankruptcy is the only viable option for Chrysler and General Motors, not–as Obama claims–because they don’t know how to make the right kinds of vehicles, but because their unsustainable union contracts make it impossible for them to be profitable. That reality has now been turned on its head, as the administration has tried to bully Chrysler’s secured creditors into going away, while the United Auto Workers Union, solely on the basis of political clout, would be paid at an implied rate of 50 percent and would emerge owning 55 percent of the company, with the government also holding a stake.
When some of the secured creditors refused to be intimidated, Obama libeled them in the press, saying, outrageously, “I don’t stand with those who held out when everyone else is making sacrifices.” Actually, under Obama’s plan the politically favored parties, principally the UAW, will benefit–will steal money, to put it crudely–from the parties who held out. Those parties call themselves the “non-TARP lenders”, and instead of getting placed in the front of the line for re-reimbursement as the Constitution demands. Obama put them literally, “in the back of the Bus”!
Not only is this an act that shreds the Constitution, but shows how people who have the temerity to oppose Obama will be treated–intimidation!
Remember this – the Obama’s Government HAS to make these Trillions of our dollars actually work or he AND the Congressional Democrats are toast! They have to have private investment to assist in order to be successful. Ask yourself this question: while the lure of profits is strong, what sensible fund manager is going to partner with the Destroyer-of-Wealth-in-Chief as long as Obama keeps throwing our money away?
There was supposed to be a midsummer budget report released a few days ago, the middle of July. But Obama has conveniently hidden it away for an extra month. Why? Health care legislation. Global warming cap-and-trade legislation. He is hiding the fact that these initiatives, futile as they are anyway, simply cannot be paid for under any scenario whatsoever. Not the best-case rosy scenario that Obama and his minions painted back in February, and certainly not under the worst-case, which is far closer to where we are. The White House has been forced to paint an economic picture that is at best smoke and mirrors, and at worst an outright fraud! Source:thebogproof;Obama
There was no stimulus in the stimulus bill. Most of the money is to be spent in 2010, an election year! The facts are in the numbers that “porkulus” was and is an utter failure. Even worse is that the actual unemployment rate is only as low as it is because many of the unemployed have simply given up on finding a job and are thus off of the statistics.Nationally we are at 105, BUT IN MANY STATES THE UNEMPLOYMENT RATES ARE APPROACHING 12except for Michigan that stands at 15%!
The nation’s debt ( the total of accumulated annual budget deficits ) now stands at $11.6 trillion. In the scheme of things, that’s more important than talking about the “deficit,” which only looks at a one-year slice of bookkeeping and totally ignores previous indebtedness that is still outstanding.
This is supposed to be a representative government, and facts such as the mid-summer budget report should not be hidden from the population to foist upon them something they would not want if they had been informed. But that is exactly what is happening under Obama. Wasn’t this supposed to be the most transparent administration in U.S. history? The only transparency here is in the seeing of the dishonesty at every step of the way. When will the electorate finally wake up? In fact, when will most of the MSM wake up? They’ve been in bed, with a smooth-talking Obama, and if and when the wake up.That next morning will be a doozy for them!
And as I bring this tome to a close I just learned that the Senate has voted to strip $1.75 billion on seven additional F-22 jets that President Obama said was unnecessary and would doom a $680 bill authorizing defense spending plans for the coming fiscal year.
The 58-40 vote prevents Obama from carrying out a threat to use the first veto of his presidency if senators had kept the designation in the defense bill.
Obama thanked the senators for approving the amendment that he says will “better protect our troops.” Absurd statement or a Commander in Chief!
Obama said he rejected the notion that the country has to “waste billions of taxpayers dollars” on outdated defense projects.
When has the newest fighter jet, that is operational, an outdated weapon? This president is dangerous!