TARP Bailout Costs Lesser Than Expected According To Government
October 6th, 2010 - 7:35 pm ICT by GDBy Meena Kar
Oct 6, (THAINDIAN NEWS) The highly controversial Troubled Asset Relief Program (TARP) has officially come to an end on October 3 and the Barack Obama Administration released a statement at the same time explaining the effect of the program. While many financial experts felt that the reported $700 billion dollar project would do nothing save blow a hole in the pocket of the federal government, some insiders have revealed that the plan might have reaped benefits for the government as well as the taxpayers.
The TARP was created to bail out organizations with the help of taxpayers’ money but the move received some severe criticism over the two years that it existed. In a statement the federal government has revealed that some independent experts have said that the TARP along with some of the other financial measures prevented the recession from turning into another Great Depression by preventing as many as 8.5 million job losses.
The government has also confirmed that the TARP bailouts have also cost much lesser than what the public had expected. It explained in the statement that due to substantial increase in the TARP repayments, the cost of the program has also come down significantly. In the statement it is also said that the TARP will not be necessary again and the public money will never be put to risk. Some economic experts felt that the move was a big risk as some of the big businesses started to feel that the government is always there to bail them out in case of a crisis. They thus described it as a moral hazard. Some also feel that the claim by the government that the TARP will not be necessary again is a bold statement to make especially considering that taxpayers have been repaid as much as $234 billion already.
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Tags: 5 million, bailout, barack obama, bold statement, dollar project, economic experts, financial experts, financial measures, great depression, independent experts, insiders, job losses, kar, meena, moral hazard, public money, recession, repayments, substantial increase, taxpayers