What the Hell is going on with TARP?

11.29.08 | Comment?

TARP’s plan for homeowners…
TARP's home owner relief plan, buy a TARP for each foreclosure.

Via Information Arbitrage:

Start-up guy: “I’ve got this start-up. I’d like $10 million to get it going.”

Investor: “$10 million for a start-up? That’s a lot of money. Can you tell me about it?”

Start-up guy: “No.”

(Amused) Investor: “Do you have a business plan?”

Start-up guy: “No.”

(Less amused) Investor: “Do you know think there is a market for your product?”

Start-up guy: “I have no idea.”

(Irked) Investor: “Then why do you think you know enough to succeed?”

Start-up guy: “I don’t.”

(Irate) Investor: “Do you really think I’ll fund you?”

Start-up guy: “Yes.”

(Incredulous) Investor: “How could you possibly think that?”

Start-up guy: “Because you already have. Check your bank account.”

(Apoplectic) Investor: “#$%@&*>@#”

Read the whole entry…

I excoriated the CEOs of the Big Three automakers for going to Congress with this attitude – the reality is, why shouldn’t they? At least they make a product. All I can see the financial companies doing is cover their own asses. They’re not helping homeowners, they’re simply keeping the cash so the financial institutions in question have a market capitalization (Citi is trading at bailout fund infusion value for instance.)

So government, what’s it going to be? Are you going to bail out your buddies, kill the American car industry, and screw homeowners? So far, that appears to be what TARP is all about, screw the taxpayer. At least be clever enough to buy a tarp for each foreclosure that happens – there’s at least a government program I understand, $35,000 tarps – kind of like $500 hammers.

I’m not happy about this…

President-Elect Obama, where are you on this farce?

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