[quote=sdrealtor]Thanx dave. I’m just a layperson in these matters and wonder where the truth lies. I’m sure plenty others do also.[/quote]
The TARP money was necessary to paper over bank insolvency as the price of assets, and the bank loans against the assets, dropped back closer to pre-bubble values. The price of assets, especially MBS assets, is now being supported back at bubble levels by other, less visible, govt programs (like the $1.2 trillion in Fed purchases of MBS), and so most of the TARP is no longer needed. It’s a shell game, and the pea got moved to the other shell. Most of the bailout is no longer to be found under the TARP shell.
