Today has seen much activity and media coverage of the TARP’s Congressional Oversight Panel. Today the Panel released a number of reports on their blog—once again blasting the TARP. “Treasury simply did not do what it said it was doing,” Ms. Warren said at a hearing before the Senate banking committee. The reports released include the third monthly report, a valuation report and a legal analysis. As previously written on OpenMarket, the COP only blows smoke.
They do, however, realize that the TARP is not working:
The Panel’s analysis revealed that in the ten largest transactions made with TARP funds, for every $100 spent by Treasury, it received assets worth, on average, only $66. This disparity translates into a $78 billion shortfall for the first $254 billion in TARP funds that were spent.
This could have been avoided had the Treasury used the ability to buy assets at auction as authorized under s. 111(c) of the EESA. Too many times in recent history have legislators proposed massive bills with little deliberation that deeply impact not only American citizens but also the world. This provision is written in the law! Having extensive laws does nothing but create problems with enforcement and the creation of loopholes — for instance the Detroit bailout.
The Obama administration will be unveiling the next plan for spending tomorrow. If there is going to be government spending, the government should certainly thoroughly consider the methods it may use in addition to their effectiveness.
Blind potshots with billions of taxpayer dollars only furthers the ideals of limited government. The popularity of the bailout illuminates this fact.