We aren’t going to agree on this…and this is just MY take on it…You are certainly entitled to yours!
I don’t think you REALLY understand what was going on PRIOR to TARP or the REAL benefit of the program…
LIBOR went from 1% to OVER 7%… THEN it went from that NEVER BEFORE SEEN range… to NO LOANS BEING MADE…AT ALL…NO OVERNIGHT BANK TO BANK LENDING at ANY RATE.
THAT…Is a FROZEN credit market…
You are forgetting what was really happening at this time…
At this point something had to be done…and QUICKLY…Businesses everywhere had lines of credit SHUT, not LOWERED…Not a RATE increase…those credit lines were CLOSED…because PANIC was setting in.
At this point the heads of the Nations biggest banks were called to Washington…They were sat down and TOLD…You’re are SIGNING this document…You are TAKING this money…If you don’t YOU WILL BE REPLACED…Remember this is all being done under GEORGE BUSH!!! If Obama did this now you’d be SCREAMING about SOCIALISM!!!
So the BUSH administration STEPPED ON THE FOUNDING FATHERS HEADS and TOOK OVER…They didn’t know WHO had which toxic assets because the way these products were packaged…So they made EVERYONE TAKE THE MONEY…they did EXACTLY the right thing at exactly the right time.
Once those banks took the TARP funds and the dust settled, INTERBANK lending resumed and LIBOR RATES FELL (currently at 1%) because at that point EVERYONE was ALL IN…The FEDS were BACK STOPPING this and made SURE there WAS a last RUNG back on the confidence ladder.
As far as your STOCK MARKET quotes…They just prove my point…
THE MAJORITY…are almost ALWAYS wrong!!!
These people SOLD THEIR STOCK at the BOTTOM (that’s why prices FALL, more SELLERS than BUYERS) and they sold at FIRE SALE PRICES (as usual) They did this at the time our Goverment had finally put the fire out. You made my point!!
As far as your point about needing a 720 credit score???
That’s called PROPER LENDING STANDARDS…You loan money to people who PAY YOU BACK!!! Credit lines get pulled in during EVERY RECESSION as banks look to protect themselves against increasing JOB LOSSES that create an inability to repay…This is Banking 101 stuff here…Happens in every recession. People with slightly LOWER scores CAN get credit now…They just PAY MORE for it. As has ALWAYS been the case up until GREENSPAN decided NO DOC’s and SUB PRIME might be a “GOOD THING FOR CONSUMERS.”
On top of it all…
GOLDMAN has ALREADY paid back EVERY DIME in Tarp money they took…WITH INTEREST!!!
MORGAN STANLEY…Has paid back EVERY DIME with INTEREST
JP MORGAN…Has paid back EVERY DIME with INTEREST
As a matter of FACT 10 other banks have repaid their TARP money WITH INTEREST and exited the program.
This program SAVED our banking system…It isn’t popular because the MAJORITY of AMERICANS look at it the way you do…With little to no understanding of what it REALLY accomplished and WHY it was done.
The reality is our GOVERMENT MADE MONEY on every CENT it loaned Goldman, JP MORGAN, and Stanley not to mention a dozen other banks.
TARP saved our banking system…It STOPPED a panic that was building and it gave the economy TIME to react RATIONALLY to changing events…
The PROOF is in the VAST DIFFERENCE from our current economic reality compared to months ago when people were BUYING GUNS at levels never before seen, they were withdrawing all available CASH and CLOSING bank accounts at levels so outragous we came within HOURS of creating LOCK DOWN in the banking system, cars loans and LEASING programs were SHUT DOWN, inter bank lending had STOPPED…and NO ONE knew where it would end…Compare that reality to where we are now…World credit makets are working, you can get a car loan (assuming you have DECENT credit) at any car dealer you go to…Home prices look like they have bottomed, AND…We STILL HAVE A BANKING SYSTEM!! The MAJORITY who SOLD THEIR STOCK at Dow 6500 are now BUYING IT BACK at DOW 9500!!! Again…you proved my point!
Hank Paulson should have a 100 elementary schools named after him.
It’ll take 30 YEARS MINIMUM for that man to get the CREDIT he deserves for what he did during this crisis. And I’ll add another name to that list…
Bernanke…The MOB thinks this guy is a dope…My take on it???
This country got LUCKY…We had a economics professor that made his BONES studying the DEPRESSION as Fed Chief…His writtings on the subject are considered some of the best ever put to paper…He understood what went WRONG and the mistakes that were made in the 1930’s…He spent his professional life TEACHING people what went wrong…He also had the advantage of 20/20 hindsight…And WE had the advantage of having HIM as a Fed Chairman when this event unfolded.
As I said…Our Goverment is not perfect…far from it…and we STILL have some MAJOR ISSUES…But last year, when the world was falling apart…The UNITED STATES stopped the panic and bought the world enough time to let COOLER HEADS PREVAIL…In the 1930’s the U.S. sat on their hands and WATCHED as the WORLD ECONOMY COLLAPSED!! This time England didn’t stop the panic…China didn’t do it…Japan didn’t do it…OUR GOVERMENT DID IT. I have a hard time BLAMING the worlds finest DEMOCRATIC SYSTEM for EVERYTHING wrong in the world! In the 1930’s there was NO LENDER OF LAST RESORT and that is what caused a cascading finacial collapse. This time our goverment stepped in and became that lender of last resort…That’s what saved the economy and the banking system.
But…you were right on ONE POINT…We will NOT agree on this.
But thats OK…You are not alone in your feelings or opinion…In FACT…You’re in the MAJORITY!. :cool