The TARP Trap

TARP is a trap, built by a private entity (The Federal Reserve), implemented by President Bush's Dirty Hank Gang, and now used by Obama administration tax cheats to control the banking industry. It's all about the power, according to Stuart Varney at WSJ Online.

He actually says it more tastefully than I do, but not by much:

The banks are at the core of the administration's thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash -- which was often forced on them in the first place -- the Obama team can work its will on the financial system to unprecedented degree. That's what's happening right now.

Varney tells a story of a big bank, which shall be left nameless to protect the innocent and guilty, that wants to give the TARP money back but can't because the government won't allow it.

But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with "adverse" consequences if its chairman persists. That's politics talking, not economics.

Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can't a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can't special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit -- until now.

Uncle Sam, why do you have such a big TARP? All the better to smother you with, my dear.

http://online.wsj.com/article/SB123879833094588163.html