Geithner: Sorry. TARP is Permanent.

Dave — Thu, 18 Jun 2009 23:49:00 +0000

This is incredible and totally unsurprising at the same time. Timothy Geithner told Jim DeMint at a recent Banking Committee hearing that even when TARP money flows back in from the bailed out banks, the Treasury Department will still be allowed to use that money. So let’s get this straight. If Goldman Sachs pays back 30 billion, and it goes back into the general fund, there would still be a 30 billion credit on Treasury’s budget to loan out again. Out of thin air. That’s a nifty way to let the Treasury Department print it’s own money without having to get the Fed involved. They just loan out some cash, let it be paid back, and boom. Instant money infusion into the general fund. That gives me an idea. Let’s just authorize a new TARP for 12 trillion dollars. Then Geithner can lend it to Citibank for a few hours and then have them give it back. No more national debt!!

Southern Bread » geithner

Geithner: Sorry. TARP is Permanent.