AP reported that Treasury’s Special Inspector General Neil Barofsky ran some numbers, and has now informed the Administration that TARP has tanked. The bank bailouts, started under Bush and continued by Obama, have not increased bank lending, nor have they stimulated jobs, and will “almost certainly” result in a loss to taxpayers. And Barney Frank has already fessed up (here) that the new bank tax is exactly what I called it on the 12jan10 RR post after it was first announced (pat, pat). The government is just trying to pile on and get a cut of the profits from continuing risky investments that they have publicly decried. The wink-wink under the table to the banks is that ‘Go do it again. And, like last time, we’ll cover your backside if you fail.’ Shame? The scumbags inside the Beltway never had any, don’t have it now, and don’t hold your breath.
Anybody out there willing to make book on how history (written by anybody but the SEIU) will judge the benefits of ARRA? ‘Do Nothing, Sooner!’ Old Ludwig’s advice to government sounds better every day.