Has TARP worked?

[Excaliber]

Well, I don't know that it's size has grown any larger, more like a change of people. Typical of every new administration. But 1ntCobra makes a good point, big banks getting bigger as a result of TARP.

As we were facing an IMMEDIATE financial crisis IMMEDIATE decisions had to be made. I recall the "heat" Bush took for his Iraq surge program, no one knew if it would work or not. It did, Bush was a hero, could have been a zero!

Same thing with TARP, virtually ALL the economists had their fingers crossed, the public was outraged, the new administration taking some serious heat. No one was really sure if it would work or not. But SOMETHING had to be done, and fast. TARP is far from perfect, but so far, it seem's to be working out well. It was critical to save some banks right away, even at the expense of others. No doubt that was a tough call, who to save, who to let go. Yup, some banks got bigger than ever! Now, let's get a handle on that with TARP, phase II.

[Ron61]

Ernie,

Even Obama has admitted that the Govt. has grown in size since he took office but it was something that had to be done and he wasn't lying when he said before he was elected that we needed less Govt. He has replaced a few people with new ones but he has created a big amount of new positions. This is true because HE said it. Not a media report.

Ron

[Feffman]

Our firm (we've taken no TARP money and are sitting on a significant pile of cash) made a bid for AIG's American investment and insurance operations several months ago. We were outbid by a firm that took TARP money so we walked away from the potential purchase (CEO said we couldn't outbid the US Government). A week or two later the firm that outbid us also walked away for their bid and shortly thereafter, AIG went back to the Fed's for about $32 Billion more in assitance. My favorite TARP story.

Feff

[427sharpe]

I resist the idea currently floated that ANY firm is 'too big to fail'. I believe that is an absolute myth. IF a mega bank had failed, what would have happened? Assets get bought up by other (better run) firms, liabilities get re-distributed, and the names on the doors change. Instead, we REWARD profligates who ran the company into the shoals! Insanity.