Wednesday, December 17, 2008

Application for TARP Capitol Purchase Program... It takes more documents to get a mortgage...


I read recently that the application to get TARP Funds (Bailout Money) was only two (2) pages long, I did not believe the story. I said to myself surely the ability to get millions and in some case billions of dollars would require more information than what it would take for a consumer to get a home mortgage, it is taxpayers dollars after all.


I have done a little research, it was real easy, google is a wonderful research tool and sure enough I discovered that the entire application is six (6) pages long, the first four (4) pages are guidelines and the final two (2) pages the application with the first page only asking for name of the institution and contact names.


Ok, my first question is and what you won't find on the document, why do you need the money and my second question, how are you going to pay it back. Seriously, not one of those two questions are on the document, if I walked into my local bank branch and asked for a loan, the first question they ask is, what do you need the loan for.


I could go on, but this bailout is the most ridiculous plan in the history of free markets. Starting with the bailout of AIG, we were fed a story that said the banking system would collapse, the only thing that would have happened is that a lot of bankers and financiers would have lost their jobs and investments and another savvy investor would have scooped up the pieces after the collapse at bargain basement prices. Their is precedent and a structured dismantling would have provided enough free cash flows for the remaining entities.


President Bush and Secretary Paulson provided their pals the biggest safety net ever to Wall Street and will take taxpayers at least a decade to get a return if ever, I am sure the way these quick funds have been released their is no guarantees or measures to track the money or reporting back to the treasury on how the money is being spent as it surely is not benefiting the very taxpayers who have provided the funds.


Here is the link to the application below:




Enjoy Today!


That Car Guy

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