White House Looking To Cut Deficit With Extra TARP Cash

wsj.com:

The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.

Read the whole story: wsj.com

Comments

[Gymyd]

So, let me get this straight. We borrowed TARP money, it put us in huge debt. Now we are going to pay back the debt with money we borrowed. Let's see, anyone who has used one credit card to pay a portion of another credit card that is maxed out and is happy about where that startegy put them in 8 or 9 months of that strategy. Okay, let's hear it. Now THIS is insane.

[Principaldad]

Again, no...I repeat, no....Once again, no.

This is not paying back one credit card with another. It is not like we are borrowing new money to pay off an old debt. This money was already borrowed for a purpose and we didn't use part of it.

This is returning some of the money that was borrowed but not used. THAT IS WHAT YOU ARE SUPPOSED TO DO.

Are you people really this cIueless?

[Truthahn]

Actually it is like paying off one credit card with another. To truly retire the debt would require using TARP funds to repurchase Treasury securities from America's creditors. Even children understand that when you give somebody an IOU in exchange for money, you remain indebted to the lender until you buy back the IOU you gave him. In the case of the TARP money, that probably won't happen. The money will most likely go into the general fund and be spent on other stuff. If the funds are used for anything other than purchasing of Treasuries, then it's not true debt retirement. Our national IOU's will remain in effect.

[BradGd]

I can't believe what I am reading here with some comments - paying off a "credit card' with another one......a­re some folks that thick?

The TARP money was borrowed to use for that purpose - there is STILL some funds that have NOT been used - and instead of using those extra funds now, they will adjust the TARP figure to a lesser number, and in turn reduce the what is now figured as debt.

Its like if you went to a bank and borrowed $1,000 and then realized you only needed $500 - so then you turn around and pay $500 right back to the bank - you now only owe $500 and your debt is reduce by $500.

[kisskins]

Sounds like one big slush fund to me.

[BradGd]

No - once the money is taken off the debt, it is not available to them without new legislation.

A slush fund would be if they set it aside for future use - but then that would not reduce the debt.

[Agent420]

I can see that stack of money from my porch.

[Agent420]

Let me get this straight. The gov. borrowed the tarp funds and now wants to use the unused funds to pay of the deficit with borrowed money? WTF!

[Matrsnot]

Yeas, Use that credit card. Use it to pay off the debt you incurred within 60 days of taking office. Trebled the debt in one signature. Love it. Bankrupt the country and then the individuals with doubled taxes and penalties on healthcare.

[Agent420]

How did he do that. Provide a link or shut up.

[joetherealist]

So what you are implying is that in one signature, President Obama turned the 11 trillion dollar debt into a 33 trillion dollar debt? How did he do that?

[ancientmarinader]

Teabag magic.

[JPMac]

No wonder this country is in such a financial crisis, this is like paying one credit card off with another!

[Principaldad]

No, the country is in such a financial crisis because so many people can't understand such a simple concept.

This is not paying of one credit card with another. It is returning unused money that you already borrowed so that you don't have to pay interest on it.

[JPMac]

I think I understand the concept quite well my friend, but why not look at things that actually will cut the deficit, like....cu­tting spending, like not proposing taking over the healthcare system to the tune of $1+ trillion over the next 10 years. Why because they don't want to do those things they want to do the opposite plus raise taxes on everyone. You can't say your serious about deficit control while proposing all these policies that will raise deficits by saying let's pay back a bunch of money we borrowed that we really didn't need and think everyone will say wow what budget hawk President Obama is!

[dobriyden]

Oh let's all just take a long walk in the park. We have as much contol over our economic well being as cattle going to slaughter. We have lost. As Greek warriors raped the captured enemy soldiers, we are about to get a royal screwing.

[dobriyden]

You borrowed money to save your business. Part of the money went to pay old bills and none went to make your business competetive. You are going to use the balance of the loan to use against the original amount of the loan. You still owe money on the total loan amount and your business is still going to fail.

Is this a correct assesment of what is goin on?

[Principaldad]

No, it is not correct.

You borrowed money to avert a specific crisis with other people's businesses in order to help their customers. You didn't need all that money and thowing the rest at the problem isn't going to help anyone. Now you are going to pay back the part you didn't use so that you have less debt.

[Bitsko]

Betcha Oprah didn't ask about Palin's son, the school bus vandal who agreed to join the Army as part of his plea agreement.

[Bitsko]

Boy is this the wrong thread!

[Airmail56]

Tarp is deficit money. The question to ask is how long has this money been sitting there, and how much in interest has it cost us? Still, this is a move in the right direction.

[cupcake65]

Why not give the money back to the taxpayers?

[Airmail56]

Carefull Cupcake...­. That type of talk on this blog will get you mounted over someone's fireplace.

[BocaMom]

It's about time Washington started thinking about the economy! Now how about thinking about getting Americans back to work, too!

[watchful123]

Local elected officials run on the platform of job creation..­.so when are they (mayors, governors) going to do their part to help create jobs?

[Matrsnot]

That is not part of the plan. The plan involves keeping people dependent on the government for upkeep.

[nirek]

We should have bailed out all Americans bank debts and NOT the banks . That would have saved the banks and the American people too.

Nirek

[Fred Hood]

I FEEL LIKE GOING IN THE STREET AND YELLING HALLELUJAH NO MORE GIVE ALWAYS....­.......

we can see what the banks did with our money....b­ought more banks an paid bonuses...­....

[ny10013]

Isn't this the same as using a Bank of america Credit card to pay off a chase credit card. Too funny

[ancientmarinader]

Yearly interest on the debt is $400 billion iirc.

But if the money isnt needed for Tarp, might as well put it back where it came from.