Chairman Obama and Geithner extend TARP’s life
Here’s the story.
U.S Treasury Secretary Timothy Geithner said the Obama administration would extend the $700 billion financial-sector bailout by 10 months but would limit the funds to just a few areas, such as housing and small business.
In letters to lawmakers, Mr. Geithner said he would extend the Troubled Asset Relief Program through October 3, 2010. “While we are extending the $700 billion program, we do not expect to deploy more than $550 billion,” Mr. Geithner wrote.
I told you that once TARP was passed it would be extended and then extended some more. In other words, it’s not going away. We’re never going back to how it was before TARP passed.
Mark it down, TARP will be extended well beyond October 2010.
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TARP is way too big a hook to give up. It gives them to much power. They won’t give it up without a fight.