TARP: the $700 billion bank bailout/corporate welfare bill

In 2008, President George W. Bush signed TARP, the $700 billion spending bill that bailed out and gave coprorate welfare to banks, insurance companies, and other big corporations.

As senators, both major party presidential candidates, John McCain and Barack Obama, voted in favor of this bill.

One of the reasons that I wrote in Ron Paul for President is because, as a member of Congress, he voted against this bill.

The bailouts rewarded irresonsible behavior, and punished good behavior. Such incentives can only make the situation worse. These bailouts are one of the main reasons why the economy is doing so poorly now.

I would have liked to see AIG, Goldman Sachs, and other irresponsible companies go bankrupt. Then their assets would be auctioned off to more efficient users, and put to better use.

I also have a moral objection to the bailouts. Corporate welfare is evil. A corporation is not supposed to last forever. If and when a corporation fails to do its job properly, it should cease to exist.

 


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A missed opportunity

FearlessFreep's picture

When the House of Representatives voted down the first bailout bill, then-senator Obama could have pushed for important changes in it such as greater transparency. (Personally, I would have preferred it if the federal government had taken over the banks.) But BHO played it safe and backed a second bill with no real changes.  Not a good harbinger for his presidency.

Remember our fun discussions about animation classics?

 

...

grundle's picture

FearlessFreep wrote:

Remember our fun discussions about animation classics?

Yes, Zorro, I remember.

I post on this Looney Tunes board with the same handle that I use here:

http://forums.goldenagecartoons.com/forumdisplay.php?f=3

 

 

Hey grundle, where the heck have you been?

Rajah's picture

 Don't believe you've been around since Mr. Cranky's near death experience.

Welcome back and yesssssssssssssss the bailout was a big mistake. The intention was to get lending happening again but that didn't occur. Instead they gave themselves bonuses and buy out smaller banks.

Thanks to the bailout

Coaster's picture

GM went from bankruptcy to again being the number one car maker on the planet. 

Of course, the tsunami helped a bit, too. 

Note that GM and Chrysler have repaid their bailout loans, though GM escaped paying back the full amount by allowing spun off and dumped pieced of thier company to assume some of that debt. 

I think it's nice that we're still a major car maker and haven't gone the route of the British.  For me, that was worth some of my tax dollars.  However, if I were a congressman at the time, I'd have attached a rider mandating the arrest and execution of any executive who had anything to do with the Aztek

 

Ugly-Ass Pontiac Aztek

 

That was the only part of the bailout I agreed with

Rajah's picture

 Of course the auto industry had to be saved

I believe we were talking about the bank and other financial institutions bailout. It was clearly a mistake what with no strings attached and very little lending going on. No regulations were reinstated, the crooks that created this crisis were rewarded for their misdeeds. No one went to jail, they were given bonuses for the "great" job they did bringing down this country. Now these rich "job creators" will continue to get tax breaks and anything else their little hearts desire as they turn this country into a third world country with no middle class. The only thing that will keep me voting for Obama is that the Republicans' clown car of candidates is alot scarier.

The Little General is still upset over losing our Weiner in Congress

A blow to penisesssssss everywhere

Did anyone see Inside Job?

TMundo's picture

that was a documentary worth watching.

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