It seems that the Troubled Asset Relief Program or TARP has now turned into a TRAP for our tax dollars. Treasury Secretary Paulson recently acknowledged that the Bailout is no longer going to purchase Troubled Assets with the money in the Troubled Asset Relief Program. What???!!!??? If we were forced to mortgage our future to bailout lending institutions from variable loans, on homes with inflated prices, and with owners who should not have been able to purchase the house in the first place then why aren’t you doing what you promised? Where is this money going to go? Did we even need $700 Billion? Can I get some of that money? We should be outraged. Who will be our voice? Just as MM suggests Paulson has become the Naked Emperor, and no the sky was not falling.
Today, three senators wrote to Secretary Paulson with their concerns. At least there are 3 out of the 535 who are willing to ask questions. Here are excerpts from the letter:
November 13, 2008
Dear Secretary Paulson:
We are writing to express our deep concern over your announcement this morning that the Department of the Treasury will halt all plans to purchase trouble mortgage assets through the Troubled Asset Relief Program (TARP). We are concerned that the program has been fundamentally changed from its original intent and worry that continued changes may erode the structures of accountability put in to protect taxpayers.
The primary reason for this course of action, we were told, was to assist the market in discovering the price of these assets and to return liquidity to the financial markets.
This troubled asset relief program has to be properly designed for immediate implementation and be sufficiently large to have maximum impact and restore market confidence. It must also protect the taxpayer to the maximum extent possible, and include provisions that ensure transparency and oversight while also ensuring the program can be implemented quickly and run effectively.
Although the legislation was passed on October 3, the program was never implemented and now has been officially abandoned in favor of alternative plans after little more than a month. Such a rapid reversal raises questions about the TARP’s original design as well as the propriety of future plans.
U.S. Senator Tom Coburn, M.D., U.S. Senator Richard Burr, U.S. Senator David Vitter
We should all write to these senators and let them know how much we appreciate their intelligence. We do not need Government spending the money where they see fit. It is our money they are borrowing, and there needs to be some oversight and transparency in order for the taxpayers to know where are money is going. Let us hope that Congress can get this together before it is too late, or I want a refund. Like a huge check in the mail.