The perception that a $700 billion bailout aided financial institutions more than consumers could make it harder to do something similar in another crisis, a government watchdog group said Thursday. (PHOTO CREDIT: Getty Images/File)
New York (CNNMoney.com) - The perception that a $700 billion bailout aided financial institutions more than consumers could make it harder to do something similar in another crisis, a government watchdog group said Thursday.
"The program is now widely perceived as bailing out Wall Street banks and domestic auto manufacturers while doing little for the 14.9 million workers who are unemployed, the 11 million homeowners who are underwater on their mortgages, or the countless other families struggling to make ends meet," the Congressional Oversight Panel said in its report.
The report said the Troubled Asset Relief Program (TARP), approved by Congress in 2008 at the height of the financial crisis, succeeded in stabilizing the financial system.
But it said the program's other goals, protecting the homes and savings of Americans, were not met. Since October 2008, more than 7 million people have received foreclosure notices, and home prices and stock values have dropped roughly 30% from their pre-crisis peaks, the report said.
Another one, just might be cause for revolt.
If Obama had let the banks fail, what happens when you don't have banks? Socialism.
If Obama had let the auto industry fail, the jobs in the auto industry would have gone to China. What happens when Americans have to buy their cars from China? Socialism.
Republicans are against TARP (Republicans were for the first TARP under Bush, but they seemed to have forgotten about that), which means they want the banks and auto industry to fail. What happens when Republicans want the banks and auto industry to fail? They are promoting socialism.
What happens when Republicans promote socialism? Tea Party.
TARP was President Bush's baby, one last parting gift to the bankers. Left loopholes and no conditions on how the money was to be used. This is one good example of how badly Republicans have run our government and then run on a campaign platform of Government being too big, too intrusive, and incompetent. I guess one could call it a self fufilling prophecy. Let them back into office with their hateful mean spirited rhetoric, with no understanding of what it means to work for every American, not just the front men for groups like Freedom works and Americans for prosperity, and this country will fold like a bad poker hand.
Who wants to bet that there will be another bank bailout. I'll guarantee it.
The bailout helped everyone. Who would be better off if our banking system had experienced a total meltdown, which in all likelihood would have happened if not for the bailout? The only basis of comparison we have would be to compare our current situation to the Great Depression. We are much better off than we might have been.
What we need to do, is to put controls in place to, as best as we can, ensure that this type of situation never occurs again. The financial reform bill did a lot toward that end. That is especially true if Congress does not have the political will to intercede in the future. Otherwise, we will have a second Great Depression if our friends on Wall Street engage in similar behavior and it goes wrong again.
After we come out of this downturn, our biggest economic priority should be to eliminate budget deficits and begin to pay down the national debt.