$700 Billion Bailout? You Wish! The Real Damage: $24 TRILLION DOLLARS
Ok, just in case you missed that headline, let us repeat. I suggest you sit down for this one, dear reader, and hopefully you haven't eaten a meal in a bit before jumping into the disturbing numbers. If you have, I advise letting it settle for at least 45 minutes before attempting to read this.
Top SIGTARP cop Neil Barofsky claims bailout programs to number NEARLY TWENTY FOUR TRILLION DOLLARS.
Can you even wrap your head around such a number? I dare one of my precious beancounters to try.
Via the Hill:
Alright, still with me?
The government’s top watchdog over the $700 billion financial rescue package said the Treasury Department has "repeatedly failed" to adopt his recommendations that would make the program more transparent and accountable to taxpayers.
Neil Barofsky, the special inspector general over the Troubled Asset Relief Program (TARP), will tell lawmakers on Tuesday that taxpayers are being left in the dark about what banks are doing with bailout money, don't know the value of the government's investments and will not know the full extent of how the money is invested.
Barofsky said that while the TARP program that Congress passed amounts to $700 billion, the total federal government support since 2007 for the economy and the financial sector could reach a far higher figure of $23.7 trillion. The government has committed significantly more money through a variety of other federal agencies and programs. [my emphasis]
While some steps have been taken, “it has repeatedly failed to adopt recommendations that [Barofsky] believes are essential to providing basic transparency …” Barofsky intends to tell lawmakers, according to prepared remarks obtained by The Hill.
"The very credibility of TARP (and thus in large measure its chance of success) depends on whether Treasury will commit, indeed as in word, to operate TARP with the highest degree of transparency possible," Barofsky says in the prepared remarks. He notes four recommendations from his office that have yet to be adopted, including one requiring banks to detail how they have used capital injections.
Market Ticker has some thoughts worth sharing on this disgusting reality, and hopefully I can keep my lunch down long enough to hit CTRL-V:
This is outrageous and threatens the very stability of our nation. How anyone can believe our banking system or indeed our nation's Treasury can survive the exposure of $24 trillion dollars, twice our GDP, is beyond me.
We most certainly cannot, and when (not if) our creditors and lenders, including China and Japan, wise up to what's going on here the game will quite literally be over, perhaps as soon as "right now."
A couple of market technicians have noted certain "patterns" in the market that have potential downside targets of zero. That sort of thing normally results in a loud guffaw from me - even though I'm bearish I'm not that bearish - I couldn't imagine anything short of global thermonuclear war, ala "Joshua", that could lead to such an outcome.
Well I think I just found something purely economic that could lead to that outcome, and its right here.
Congress is all we have left - they need to take control of this problem right here and now, revoke the authorization for this ersatz spending commitment immediately, and appoint a whole passel of special prosecutors to start issuing indictments to everyone involved in this outrage.
We need cops and we need 'em right now before our creditors decide to cut off our credit card and destroy this nation's economy and government - a decision that they could make literally at any time.
That's fucking it. If you aren't ready to storm the Alamo and take our country back yet, I humbly suggest you fuck off and move to Canada.
Do I have a solution? Sadly, no. We're being looted and it appears at this point that there is absolutely nothing we can do to stop it. This is not entirely Obama's fault, so it would be unfair to say as much (though he certainly hasn't wasted a precious second exacerbating the issue and should certainly be held accountable for his part in this mess), it is the culmination of years of loose, irresponsible behavior on the part of the regulatory agencies of this country. YES, FEDERAL RESERVE, I AM MOSTLY SHAKING MY LONG FREAKISH FINGER AT YOU.
Barofsky's report is mostly obvious except for the math (WaPo):
Many of the banks that got federal aid to support increased lending have instead used some of the money to make investments, repay debts or buy other banks, according to a new report from the special inspector general overseeing the government's financial rescue program.
The report, which will be published Monday, surveyed 360 banks that got money through the end of January and found that 110 had invested at least some of it, that 52 had repaid debts and that 15 had used funds to buy other banks.
Well what the fuck? Who expected the funds to be used correctly when TARP itself was accomplished under false pretenses?
"Failure to impose a wall," Barofsky said, will leave the government open to criticism "that Treasury is using TARP to pick winners and losers."
The Treasury has already picked the winners and losers.
Winners: banking interests
Losers: the bitches who pay taxes and elect these pricks to public office
End of story.
So how long are you going to sit there and be a bitch, America? Just wondering. Maybe it's just me but I don't appreciate getting bent over to the tune of $24 trillion dollars under any circumstances, not even for love. And there's no love to be had in this particular clusterfuck.
As we have said time and time again: indictments or it didn't happen. AND NOW!