Beware of Congressmen with Checkbooks

Ever since Secretary Paulson first mentioned the Troubled Asset Relief Program (TARP), we have been assured by officials at all levels of government that there was a very high probability that the government would either make its money back or make a small profit.  However, an article in this morning's New York Times has put this argument into question.

As stated in the article, "Michigan’s Congressional delegation is urging the Treasury Secretary and the Federal Reserve Chairman to use their authority as part of the $700 billion bailout package to help more consumers obtain car loans..."

Recent declines in real estate prices have caused some to wonder whether real estate is a viable long-term investment.  However, most agree that if the Federal Government buys the troubled real estate assets at market prices, they will eventually make money. 

Cars, however, are a different thing altogether (except for the fact that many are worried they will have to live out of them).  Everyone knows that a car's value diminishes in value the second you drive it off the lot.  Everyone, that is, except for the Michigan Congressional delegation.  So much for putting the best interest of taxpayers at the forefront.

Comments

[Socialism c...:]

Heh. Was this ever a question? There's 2 sides to a trade...if the banks were gonna come out ahead, the Fed was gonna lose!

2008 Oct 23 05:39 PM