Government Already Overpaid By $78 Billion In Bailout Money

from the transparency? dept

Well here's a quick, but depressing one. As politicians are still debating the stimulus package, the head of the Congressional Oversight Panel for the TARP bailout funds is admitting that we, the taxpayers, appear to have already paid $254 billion for assets that appear to be worth $176 billion. That's a shortfall of $78 billion that may have just gone up in smoke, effectively. Now, it may eventually happen that the assets we now own appreciate in value, and that money is made back, but this is the key problem with just having the gov't jump into "buying" bad assets. It's almost guaranteed that they're going to overspend. If that doesn't make you uncomfortable about what sort of mess we're going to get with the stimulus package, I don't know what will. The government isn't just throwing money at a problem that might not need money -- it's doing it badly. On a historic level.
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Filed Under: bailout, overspending, tarp, transparency

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  1. identicon
    Anonymous Coward, 6 Feb 2009 @ 8:54am

    The assets would have been overpaid for even if they were valued correctly because the value of those assets are in a downswing right now. Such a grand scale is disheartening though.

    All of this money seems to be going to banks so they can loan out more money and put more people in debt. It doesn't seem to be stopping any foreclosures or anyone keep their jobs. Ok, they over paid for assets..where did that money go, how is it helping? Oh that's helped AIG take all their exuctives to New York where they could each stay in rooms that cost like 20k a night.

    What really amazes me is that wall street bankers earned almost 20 billion dollars in bonuses in 2008. How the hell does that happen? I know I sure as heck would not receive any type of bonus if I failed at my job so badly it destroyed the global economy.

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