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TARP Transparency, Stimulating Recession and Union Arrogance

Daily Update

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TARP Transparency, Stimulating Recession and Union Arrogance

Congress cites a lack of financial transparency in a report sharply critical of the Troubled Asset Relief Program (TARP) bailout.

The economies of Germany and France emerge from recession.

Sen. Jay Rockefeller (D-WV) blasts union leaders for claiming to have influence over Obama administration executive appointments.

Listen to LibertyWeek, the entertaining and insightful CEI podcast. 

1. BUSINESS 

Congress cites a lack of financial transparency in a report sharply critical of the Troubled Asset Relief Program (TARP) bailout.

CEI Expert Available to Comment: Regulatory Studies Fellow Ryan Young on the program’s larger problems

“TARP’s biggest problem is that it makes the price of risk lower than its actual cost. Say an investment firm puts a lot of money into a risky investment, like securitized mortgages. If it goes bad, the firm pays a very low price; the government bails it out. But that low price does not reflect the cost of the defaulted mortgages, which hasn’t changed a penny. Someone still has to pay for defaulted mortgages. Under TARP, that would be taxpayers. We are all paying the cost of the bad decisions of a few.” 

 

2. INTERNATIONAL

The economies of Germany and France emerge from recession.

CEI Expert Available to Comment: Senior Attorney Hans Bader on what the U.S. can learn from their experience: 

“France’s conservative President adopted a much smaller $31 billion stimulus package [than the U.S.], which, unlike Obama’s, was focused on productive investment, not welfare or social services. $14.5 billion of France’s stimulus package was earmarked for injection ‘into private sector enterprises.’ Billions more were for investments in infrastructure, construction projects, and railways. In the U.S., Obama pushed through a much more costly, welfare-filled $800 billion stimulus package through fear-mongering. Obama claimed his stimulus package was needed to prevent ‘disaster’ and ‘irreversible decline.’” 

 

3. POLITICS

Sen. Jay Rockefeller (D-WV) blasts union leaders for claiming to have influence over Obama administration executive appointments.

CEI Expert Available to Comment: Editorial Director Ivan Osorio on the union’s self-aggrandizing claim

“Obama critics have accused his administration of being too cozy with organized labor, but it’s not often that a union says the same thing. This should put the onus on the administration to show some daylight between itself and Big Labor, but I won’t be holding my breath.” 

 

Listen to LibertyWeek, the CEI podcast, here.