Had Enough of TARP? Here Comes BARF!

by Ryan on January 30, 2009

in Economy

First, there was the “Troubled Asset Relief Program” (TARP) which was the first nauseating bailout last fall.  Well, tax-cheat and Treasury Secretary Tim Geithner has an idea about what to do now that TARP has not really helped get the markets moving:  what Liz Moyer calls “BARF”, or the Bad Asset Repository Fund

Here’s the basic idea:  the government will buy-up all those bad “for sale” assets not yet handled under TARP and guarantee them, holding them until “maturity.”  With soooooo many “for sale” assets sitting there in the market, the most appropriate acronym for the program according to Moyer would be BARF because if this crazy idea comes to fruition, the federal government will essentially have to absorb $3.5 trillion in these assets! 

That makes me want to “barf” too, but then again, so does a lot going on in Washington these days.  How are we going to pay for this, our current liabilities like Social Security and Medicare, and future liabilities like ObamaCare and the Blue Shirt Brigades?  None of this makes real economic sense, and is completely implausible.  The problem is, ideas like this are being floated and some are taking them seriously.  Barf!

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