Thursday, April 22, 2010

Extending TARP?

U.S. Treasury Secretary Timothy Geithner on Wednesday extended the government's $700 billion financial bailout fund to October 2010, saying it is still needed for "significant challenges" in the economy.

Geithner, in letters to congressional leaders, pledged to deploy no more than $550 billion from the Troubled Asset Relief Program, allowing the remainder to reduce budget deficits.

The extension, opposed by many Republicans, will allow the Obama administration to tap the financial rescue program for further efforts to fight home foreclosures and to ease credit for small businesses in the hopes of spurring job growth.

TARP resulted in waste, fraud, abuse and the utter failure to achieve its main goals (avoiding foreclosures and spurring job growth).

Of course, that means the administration will continue a bad program with no effort at self correction, just more rhetoric.

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