In More Bizarro World News: OMGObama Turns to TARP to Fix Deficit Problems
If someone could please, please explain this to me I will be forever indebted to you for your kindness. And I will totally accept "this administration is smoking crack" as an explanation. Thanks.
The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.
The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August.
On the $700 billion Troubled Asset Relief Program, the administration is considering a change that may appear to improve the fiscal situation. Agreeing not to spend a certain amount of TARP money will enable the White House, in its budget projections, to assume less money out the door and, therefore, less debt issued. The move would also reduce the deficit by an unknown amount since a certain level of spending and borrowing is already factored into estimated future deficits.
The Treasury Department said about $210 billion in TARP funds remains unspent, including about $70 billion returned from financial institutions. A further $50 billion is expected to be repaid in the next 12 to 18 months.
Budget experts said committing some TARP funds toward debt reduction could help calm concerns about the size and intent of the program. "I don't necessarily want them to pull back in a huge way, because there's a lot of uncertainty, but right now what we've got could turn into a $700 billion slush fund" for Congress, said Douglas Elliott, a fellow with the Brookings Institution, a liberal think tank.
Nowhere in TARP does it stay "use this to make your crack addict spending habits look less bad" and we've already been fooled once - or does no one remember Hank Paulson and the "yeah yeah, toxic assets, mmm hmm"?
Speaking of which, what's up with those assets? Isn't PPIP still plugging on?
And what about that $500 billion line of credit from the Treasury that Congress promised the long-insolvent FDIC?
You people are out of your damn minds.
Reporting from Canada,
Jr Deputy Accountant