TARP: Another one on the Horizon?

Here is the analysis of Neil Barofsky, the special inspector general for the trouble asset relief program. bottom line, TARP was supposed to buy up all that bad mortgages. What it went to instead was the pockets of the big financials to keep them afloat. ALL THE BAD MORTGAGES are still out there and we are still waiting for the commercial real estate crisis to occur. Banks are failing every week (they announce the failures at 5:00 PM on Fridays so no one will notice) and many banks are still showing bad mortgages at full price on the books, afraid to close them out because it will show that the bank is in reality, underwater.


Sooner or later, the bill is going to come true. Another bailout will only exacerbate the issue. In free market system, sometimes you fail. the sooner the pain comes, the quicker we can start a real recovery. Pain... It is part of the healing process and trying to dodge it just will make you sicker in the long run.