U.S. Treasury Secretary Henry Paulson has requested that Congress give him the remainder of the $700 billion TARP funds approved in the hopes of steering the U.S. Economy away from recession.
The original plan for the TARP money called for Paulson to use the funds on the purchase of illiquid assets from firms in the financial sector. Paulson’s decision to inject liquidity into the financial system has garnered him a bit of unpopularity and what appears as a bit of a premature request for the second half of the $700 billion certainly doesn’t help.
Paulson’s original plan had been to leave the remaining $250 billion in TARP funds for his successor, Timothy Geithner, but the Bush administration made the decision to hand over $17.4 billion to bailout GM and Chrysler, and the government’s finding it’s pocketbook a bit thin in comparison to it’s recent promises.
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1 Florence Foote // Jun 7, 2009 at 6:57 pm
And so the seeds of inflation have been sown. We are likely reap the higher interest rates for a generation. Thus, I prefer to stick with the safest loan imaginable: a thirty year fixed rate fully amortizing loan. See, http://1to4plex.com/buy/investors/
Avoid the hidden tax of inflation by locking in a low rate now!
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