Sunday, May 5, 2019

TARP

TARP, or the Troubled Asset Relief Program was a program signed by President George W. Bush in October of 2008.  TARP's purpose was to help guide the economy out of recession by the involvement of government.  It gave the US Treasury $700 billion to spend on stagnant and undesirable assets, such as property from failed mortgages, from banks and financial institutions alike.  This would help relieve the falling housing market and uptake the excess supply of property.  Banks and financial institutions which owned failed mortgages would be able to be saved.

The division of spending was as follows:
$250 billion to programs stabilizing banks
$27 billion to restarting credit markets
$82 billion to restabilizing the automotive industry
$70 billion to stabilize AIG
$46 billion to assist families undergoing foreclosure

(These numbers do not add up to $700 billion because the total spending was attempted to be reduced to $475 billion)

The US government today reports that TARP was successful in correcting the collapsing economy as well as producing a $65 billion profit for the government simultaneously.  

3 comments:

Anonymous said...

This was a good look on President Bush part being able to financially try to cover many useful and beneficial things.

Anonymous said...

I liked how you included stats. It made it a lot easier to visualize how much money the government needed to pump into these companies to avoid a bigger disaster.

Anonymous said...

Good analysis! The statistics definitely help to provide a greater image of the government intervention. The TARP was a very controversial move, with billions of dollars that some Republicans argued shouldn't be used by the government, and that some leftists protested being spent on corporations instead of the people.

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