Within fewer than 18 months, the U.S. government has spent, loaned, guaranteed or committed an astronomical sum of $11.6 trillion in an all-out attempt to bail out failing companies, save Wall Street from a financial meltdown, and prevent an economic disaster. Yet, despite these Herculean efforts, American households have lost $12.9 trillion in wealth, millions are losing their jobs, and the economy is sinking into a depression.
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Dr. Weiss:
Your analysis is clearly the best fundamental available from the macro perspective. One factor that may need addressing is “repayment of the TARP” loans. Recently, Goldman Sacks began to raise capital to repay this. President O’bama is saying that repayment is the key to making this entire bailout fair. The banks get the TARP, they recover, they payback with interest, and EVERBODY WINS.
I think a nice piece that shows the low probability of such an outcome would help to seal the coffin on this last justification the bailout. Will the TARP be repaid? Can it be?
Thank you
Jim