TARP: Republicans Misrepresent Taxpayer Burden

Here is more evidence that the Republicans are misleading the public with respect to TARP.

The current projected TARP cost is 105.4 billion dollars. It is not clear if this figure includes the increase in value of the 7.7 billion dollars of Citibank common stock held by the Treasury dept.

This is good news for taxpayers. The original projected cost of TARP was much higher.

The Treasury department netted 840 million dollars by selling Wells Fargo warrants. Well Fargo had paid back the 25 billion dollar bail out.

If you buy stock warrants, you will be able to buy common stock at a fixed price.

In addition:

320 million dollars was received from sales of PNC Financial Service warrants.

11.5 million dollars was received from sales of Signature Bank warrants

15.4 million dollars was received from sales of Washington Federal stock warrants.

So the government not only retrieves the bail out money: The sale of stocks and warrant brings in net profits.

This is radically different from what the Republicans are saying. The taxpayers may not have to bear the burden of TARP.

The Republicans do not want the voters to know that TARP is earning an 8.5 % net profit due the the terms of TARP.

Here is another example of the insincerity of the Republicans when they talk about lowering the national debt.

Not long ago, a bill was in Congress that would impose a fee on all financial institutions to repay the TARP funds. If that bill had passed, our children and grandchildren would not have to pay anything for TARP.

If the Republicans were truly interested in lowering the national debt, they would have voted for that bill. They did not. These are the types of actions that increase the national debt. In addition, the "pay as you go" rule is not enforced when considering expenditures.

I said this before and I'll say it again. The attitude of politicians will drive our nation into bankruptcy regardless of what social programs are implemented or deleted. We are headed for a disaster during which we will be owned by the nations we owe money to.