TARP Inspector: Taxpayers Really Are On The Hook For $24 Trillion In Bailout Spending

Earlier this week I posted news about taxpayer commitments under the various federal bailout/economic rescue programs reaching $23.7 trillion. When that news hit the Obama administration was quick to dismiss the figure as inflated, but the guy responsible for it, the inspector general for the TARP program, isn’t backing down.
He says it’s very, very real.

Barofsky told us that the Treasury Department “is not being transparent with respect to the TARP,” the $700 billion in funds (and more) the government is using as loans and bailouts to help stabilize the financial markets. “They’ve failed to adopt some very basic recommendations we’ve had toward transparency,” he said.
Called the “SIGTARP,” Barofsky appeared before Congress this week and told them that the government’s commitment to fix the financial system could potentially reach $23.7 trillion, and criticized the Treasury Department for calling his team’s estimate “inflated.”
“I think that the Treasury Department ought to read the report before they make comments, at least the spokesperson’s office,” Barofsky said. “Our methodology is laid out in black and white in the report. … As far as the numbers being inflated, where do you think we got the numbers from? We got it from the Treasury Department, we got it from the Federal Reserve. … If these numbers are inflated, it’s because they inflated them when they put them out in the public, not because of us.” …
“Perhaps their criticism is that we dare to do math,” he said. He added that his team tried to convince the Treasury that they were wrong, and that recipients should be required to report on how they use the federal funds, and those should be shown to the American people so that they know it’s “not being thrown into a black hole.”

Of course, just because the taxpayers are committed to $23.7 in economic rescue doesn’t mean all that spending will happen. But with the economy going the way it’s going, and with our debt situation already precarious (to put it mildly) and getting worse, we can’t really afford to role the dice in committing ourselves to a potential level of spending that’s twice our nation’s yearly GDP can we?
Apparently the Obama administration thinks we can. But then the Obama administration is also ok with running up what will be roughly $2 trillion in debt in less than 200 days in office.

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  • http://Array LoadTheMule

    Hey, it’s only money. And we can always print more of that, right? Just ask Dino and Buzz–well, and Hannitized and realitybasedbob, too. That’s why we went off of the gold standard you know, so we can play Monopoly any ol’ time we want. *sigh* Fucking assholes.

  • http://www.webwallpapers.net/ Wallpapers

    Currently, I wish that I could do something major about this, but I can’t. For now, I will have to put my faith in the system and hope that it gets somewhere in the next 4 years.

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    The meltdown and the bailouts started long before Obama even won the election.

    Don’t believe me? Just listen to this guy:

    President Bush Addresses Nation on Economic Crisis

    And what did the meltdown follow? Total republican control over the economy? Conservative fiscal policy that deregulated the financial markets and cut taxes deeply? Oh yeah, those.

  • LoadTheMule

    Once again Dino couldn’t find a clue, in the middle of a clue field, at the height of clue hunting season, if he smeared his body with musk and did the clue-mating dance.

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    Perhaps you can refute my assertions?

    Doubt it, stem.

  • robert108

    Your “assertions” are superstitious nonsense, little dino, and intended to distract from Obama’s insane debt creation by recycling your same old lies about what Dem social engineering and market-rigging did to our economy for thirty years.

  • robert108

    You are right that Bush was not so good for the economy.

    Please give any and all economic arguments, using facts, logic and causal reasoning, that support your claim.

  • Brent

    Dino,

    You are right that Bush was not so good for the economy. But Bush wasn’t conservative. Remember, he was a “compassionate” conservative. That is, he believed that you could vastly expand the state, if only you cut taxes by 4 percentage points. Medicare prescription drug, Dept. of Homeland Security, No Child Left Behind, drastically increasing domestic spending, while at the same time engaging in two wars. Oh, and he signed off on a huge expansion of regulations for virtually all mid-to-large sized corporations. Not to mention his anti-trust department was amongst the worst at destroying private sector efficiencies (no Microsoft cases that made big headlines like Clinton, but many, many smaller stupidities).

    And none of this includes any talk about Greenspan and Bernanke. It should be obvious that these republican appointees are nothing short of socialist czars over the most important good in an advanced economy — i.e., money. Moreover, while Greenspan started it, Bernanke has taken the interventionist philosophy of picking winners and losers (bailouts, guarantees, etc. for specific firms) to a whole new level.

    But you fail — absolutely fail — when you don’t blame democrats for any of this. All they do is support going even further than all of these things that republicans like Bush did. Of course, you think Bush was some sort of free market philosopher. He wasn’t. He was just another dopey politician.

  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    rube, perhaps you missed it when I asked you about your travels.

    What countries have you been to?

    What states have you been to?

  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    Sorry to go off topic, I so rarely do, please forgive me.

  • robert108

    Pretty sure he did that in his comment, Robert. You just don’t get it, Rob. No administration is “good for the economy”; there are just some who are less harmful to it. Little dino keeps squealing about “tax cuts causing a recession”, which is what I was addressing; little dino has never, despite countless request, been able to make any causal argument for that claim.

    Honestly, you’re as bad as Dino sometimes just with Republicans. More ad hominem smear from you, Rob, in place of any valid argument. I asked a question, whereas little dino screams threats and insults. You’re dead wrong, as usual, when you try to attack me by mischaracterizing me.

    Another thing, Rob; I argue for conservative principles, not necessarily Republicans. Just another inaccurate smear attempt from you.

    In your zeal to lie about me, Rob, you ignore the many comments I have made listing the same things that Brent listed; when Republicans adopt Dem economic policies, it’s just as bad as when Dems do it, but no worse. Even so, the present Dem is immeasurable more destructive than any RINO has ever been.
    Last Spring, I was the one advocating a Republican candidate who contrasted with the Dems, remember? Limited govt, decreased social spending, lower tax rates and contraction of govt. You can look it up in your database, or you can just keep lying about me. Your choice.

  • Hannitized

    You just don’t get it, Rob. No administration is “good for the economy”; there are just some who are less harmful to it.

    In other words, some administrations are not so good for the economy.

  • http://proof-proofpositive.blogspot.com/ proof_positive

    Once again Dino couldn’t find a clue, in the middle of a clue field, at the height of clue hunting season, if he smeared his body with musk and did the clue-mating dance.

    I don’t care who you are, that there’s funny!

  • LoadTheMule

    Perhaps you can refute my assertions?

    Doubt it, stem.

    I never try to teach a pig to sing, Dino. As you have proven on multiple occasions, it wastes my time and it annoys the pig.

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    But Bush wasn’t conservative.

    Yes, we know. When conservatives fail (as they always do) they weren’t real conservatives. That dodge has been around forever.

    I never try to teach a pig to sing, Dino.

    Oh c’mon Mule, give it a try! Here, I’ll post it again:

    The meltdown and the bailouts started long before Obama even won the election.

    Don’t believe me? Just listen to this guy:

    President Bush Addresses Nation on Economic Crisis

    And what did the meltdown follow? Total republican control over the economy? Conservative fiscal policy that deregulated the financial markets and cut taxes deeply? Oh yeah, those.

  • Brent

    Please give any and all economic arguments, using facts, logic and causal reasoning, that support your claim.

    Robert, books have been written about the subject. Just to be clear, I didn’t even touch on the “2008 Stimulus” bill and Henry Paulson’s crazy endeavors into fascism. I was merely pointing to the non-conservative aspects that “everyone should know” about the Bush presidency in general.

    Yes, we know. When conservatives fail (as they always do) they weren’t real conservatives. That dodge has been around forever.

    Except I thought Bush was a failure long before he was re-elected. And by 2005 it was more than obvious that he was going to have Greenspan’s mess blow up on him in the form of a deflating real estate bubble.

    Face it. He wasn’t conservative. You could argue that the republican congress from 1994-2000 (when they were opposing a democrat president) was relatively conservative, but the republicans in congress failed to be conservatives when “their guy” got in the White House and decided to be more “compassionate” (and reckless).

  • http://sayanythingblog.com robport

    Pretty sure he did that in his comment, Robert.

    Honestly, you’re as bad as Dino sometimes just with Republicans.

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