However, that doesn't mean TARP was initially a mistake. TARP was was and is demogogued by the political class who use it for their own gain; unfortunately most people on both right and left believe the lies.
TARP has only stemmed the panic. It hasn’t actually solved the debt crisis we are still facing.
Doesn’t it seem bizarre to you that if we had a crisis, we could solve the problem with $498.3B*?
(page 10,paragraph 3 http://sigtarp.gov/reports/congress/2010/July2010_Quarterly_Report_to_Congress.pdf)
Consider the Government Balance Sheet
Consolidated Statement Federal, State and Local Government
Assets:
Present Value of current US tax system: $3.74 trillion/4% = $93.5 trillion
Government Land and Structures: $10 trillion
Private Sector Financial Assets: $3.6 trillion
Social Security Trust Fund: $2.5 trillion
Market Value of Federal Reserve System: $45 billion(’09 profit)/.04= $1.1 trillion
US Military’s overseas bases, military hardware equipment, and Federal patents: $5 trillion
Total US Government Assets: $115.7 trillion
Liabilities:
Current Federal, State, and Local obligations: $11.9 trillion
Social Security Trust Fund: $2.5 trillion
Total Liabilities: $14.4 trillion
Net worth: $101.3 trillion
Liabilities/Total Assets = 12.4%
The government can of course increase taxes at will to boost its tax revenues and assets...
Other liabilities including medicare , medicaid etc it has no Constitutional obligation to pay, and the government makes its own law so they have no legal obligation either. As such they would not appear on any corporate balance sheet, and in all likelihood will never be paid..
Off balance sheet assets: US Private Sector Assets, non-government assets available for taxation: $67.8 trillion...