Abuse of TARP

The Wall Street bailout, also known as TARP (standing for Troubled Assets Relief Program), is turning into a real joke. The purpose of this tax payer funded injection of capital was to free up liquidity in the credit markets. Has it done that? No. All it has effectively done is be abused and presented as a stop gap solution to the tax payers of America. If I were one of them, I would be furious. For all the articles relating to the points made, the highlighted points provide a link directly to them.

First of all, let’s look at the American banks that are suddenly funding large take overs of foreign companies. Bank of America has spared no time in acquiring a larger stake of a Chinese construction bank as they receive federal aid and cut jobs, and JP Morgan is spending millions on a new European HQ in London’s Canary Wharf. Let’s keep on receiving tax payer funds though, because we’re struggling with liquidity!

While we are at it, let’s allow foreign companies to benefit from American tax payer dollars too!

But wait, there’s more! So you need to be a bank to access TARP funds? No problem lets just acquire a cheap bank and exploit it by accessing TARP funds worth billions through it!

All the above points and many more have been made by various financial professionals in many arenas. Why then are people letting tax payer funds be abused like this?

DS