Friday, April 24, 2009

One would think this Washington Post headline "Auditor: 'Hundreds Of Billions' Of Bailout Could Be Lost To Fraud" should have drawn some interest. Yet, I typed in" TARP" into google news right now and this story does not even come up in the top 30-40 stories. Noo bloggers are really covering it. Amazing.

Perhaps this is because we just assume there will be fraud, or feel powerless to stop it. More likely is the media doesn;t know how to spin it into a story of good and evil. It is just sad. But what if I told you that the loss of "hundreds of billions" of taxpayer money will come from the basic way the program has been set up by Geithner and Co (not fraud) and can pretty simply be made a thousand times better.

I actually listened to Obama's "inspector general" of the $700 Billion TARP fund on CSPAN today (Neil Barofsky) and he explained how the problem is the fundamental design of the program, whereby the buyers of "toxic assets" will inevitably be the ones who own other similar assets (big fund managers). They will be able to basically set the price of these assets higher putting our money at risk and then pawn off their current worthless assets for this higher price. We get stuck with assets worth diddly squat in the end. The game was designed for Wall Street, not the taxpayer.

We are about to get robbed for a sickening amount of money, and are being told exactly how it is going to happen. Not one thing will likely happen to prevent it. Is this a joke? We hire a person to tell us how we are going to get screwed and we can't even get it together enough to put a condom on.


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