Posted on 02/03/2010 5:22:49 PM PST by Kaslin
TARP: The OMB director is grilled over the misuse of bank bailout funds for purposes other than intended by Congress. This taxpayer money wasn't intended to be the administration's perpetual slush fund.
When the specifically targeted and named Troubled Asset Relief Program was enacted, we were told it was a necessary and wise investment. It would stabilize the financial system and keep credit and money moving. We would even get our money back and then some.
Many banks didn't want the money or need it. Some were told to take it or they'd be audited. So they took it. The banks, eager to break free from federal interference, paid the money back with some interest. The money was intended to be returned to the Treasury for deficit reduction. But an administration that touts a token discretionary spending freeze has no such intention.
This is more than government failing to keep a promise. This is a patently unconstitutional act, as Republican Sen. Judd Gregg of New Hampshire tried to point out to Office of Management and Budget Director Peter Orszag on Monday over administration plans to transfer bailout funds to a new small-business loan program.
While President Obama was visiting Nashua, Gregg's birthplace, the senator took exception to Orszag's defense of the plan to funnel $30 billion of the paid-back TARP money into a program to provide credit to small businesses.
(Excerpt) Read more at investors.com ...
Sounds like sufficient grounds for impeachment. Oh, well ... maybe after the Great Turmoil.
“The power of the purse is given by the Constitution to Congress.”
Oh the Irony of it all Congress turned the printing presses over to the Fed which is really a group of banks and now they really opened up a Pandora’s box.
>> plans to transfer bailout funds to a new small-business loan program.
Too late. Relieve the debt obligation.
Companies have adapted and will only use the loans to restructure, and restock. With a stagnant economy, no additional payroll risks will be taken unless necessary.
To paraphrase the newly minted Sen from Mass:
‘That money does not belong to you or congress, Mr. President. It belongs to WtP. Please kindly return it.’
I speak with the voice of experience. Small businesses DO NOT want to take on extra debt right not. They need some solid evidence that Washington is ready to help them start growing again. IMHO, this could be done through accelerated depreciation of business equpment, lowered payroll taxes, reduced corporate taxes, etc.
Small businesses, the engine that drives our country, aren't going to do much without some iron clad guarantees. They are tired of all the political posturing, BS and lies. They want to just get on down the road.
Obama never misses an opportunity to bash Bush, yet he always tries to take credit for the TARP which was signed into law by none other than G.W.Bush.
Laughs.
Okay, sue them.
It’ll cost you millions. You’ll lose. The press will tear your reputation apart and call the administration heroes.
You’re up against powerful lefties. They’re going to get away with it. That’s the way the world works.
No?
What happened to the ClimateGate guys? Are they facing jail time? Have any of them lost their jobs? Have any of them even been forced to answer questions?
No.
Get used to it. The law for you and me isn’t the same law they have to follow.
Ditto that.
I do not fear the market.
I fear the government.
A small business would have to be nuts to take this, given all the retroactive BS forced on the banks and the auto companies who took federal bailouts. There will be very strong strings attached,of that you can be sure. No thanks, I'd rather go bankrupt.
The OMB director is grilled over the misuse of bank bailout funds for purposes other than intended by Congress. This taxpayer money wasn't intended to be the administration's perpetual slush fund. When the specifically targeted and named Troubled Asset Relief Program was enacted, we were told it was a necessary and wise investment.Thanks Kaslin.
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