Skip to comments.Geithner Pleads With Europe To Pass EuroTARP, Obama Wants HARP 2.0+ Passed
Posted on 06/08/2012 1:15:43 PM PDT by whitedog57
Treasury Secretary Timothy Geithner is pleading with Europe to repeat the American banking experiment called TARP Troubled Asset Relief Program.
Europe already has programs in place such as LTRO. Geithner wants a huge infusion of cash into Euro banks (such as in faltering Spanish banks).
Will it work? It will discourage further bank failures, but it doesnt solve the underlying problem government spent too much, borrowed too much and promised too many entitlements. Eurozone growth is feeble and simply giving banks more money may instill confidence in the banking system, but it does not necessarily help with more loans.
While numerous pundits praised our bank bailout (TARP), the fact remains that banks are still slow to lend. This is reflected in our M2 Money Velocity which has fallen off a cliff.
President Obama spoke this morning and mentioned (again) his desire for Congress to pass further loan modification adjustments (putting $300 dollars in borrowers hands). This is a reference to taking the taxpayer safeguards off of HARP 2.0 and allow no appraisals, etc. HARP 2.0 is actually firing up, so why not let HARP 2.0 play out? More risk for taxpayers is not a great strategy.
Both President Obama (today) and Fed Chair Obama said the housing market is stable (or stabilizing). One would think that the Administration and Congress would leave well enough alone and not tamper any further.
But alas, the Senate will likely bring HARP 2.0+ to the floor. But it is BAD economic policy and prevents the housing market from healing.
Here is my Fox Business interview from today on my less than enthusiastic outlook for U.S. housing.
Photo of Treasury Secretary Geithner pleading with European leaders about EuroTarp.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
D'ya think that Dodd-Frank might have something to do with that? Yep.
Hey timmah... GFY!
I couldn’t stop laughing when I heard the Food Stamp President sent Turbo Timmy and Helicopter Ben over to the EU to straighten them out .... my sides still hurt. Then the Food Stamp President holds a news conference tells the EU to follow his success .... I’m sure they were impressed by the president known as the “Food Stamp President”.
Another urgency speech is coming soon. If congress doesnot pass this bill to save europe we are all doomed. SOUNDS LIKE THIS IS A LAST DITCH EFFORT TO LOOT THE AMERICAN TAXPAYER BEFORE WE THROW HIS A## OUT IN NOVEMBER.