Don’t Tell The Tea Party

Well, it turns out that bailing out Citigroup with TARP (though unpopular and not at all likely to curb Wall St. excesses) wasn’t the financial apocalypse that the Tea Party said it was. That’s funny, I was under the impression they were motivated by financial sanity. Of course, they also believe it was Obama who came up with the plan. Unfortunately for their credibility, that’s not true. In fact, many Republicans, recognizing its necessity, voted for it when Bush proposed it. Check out this video of Cryin’ John Boehner shedding tears over getting TARP passed on the House floor in 2008. Yet, here’s the propaganda site, GOP.gov, trying to rewrite history in early 2009, after it became clear the American people didn’t like the word ‘bailout’.

Flash forward to today. The federal government stands to make a $12.3 billion profit on its sale of Citigroup products. Remember, it cost $45 billion to bail them out and we got all of that back. The $12.3 billion is taxpayer profit!

Now, arguing whether steps should have been taken after stabilizing the financial sector in order to punish them and reign in their chicanery is another issue altogether. But if the issue is whether the US is in debt because of all the bailouts, then, at least in the case of Citigroup, the exact opposite is true.

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3 Responses to “Don’t Tell The Tea Party”

  1. You got one part wrong; from what I’ve gathered, the Tea Party never thought that TARP would be a financial apocalypse right now. They have and do still think that it will be one later due to it completely reinforcing stupid behavior by the financial industry and telling them that they could screw up as much as they liked and we, the People would pick up bill for bailing them out.

    On the other hand, TARP has worked out better than I though it would. For once, being wrong is pleasant.

    • Kudos for the admission. Unfortunately, the financial reform package to keep the financial service sector in line in the future was similarly demagogued by the Right, including the Tea Party. After railing against it for months, the Republicans finally helped pass a much weaker bill. I think the bill will do some good, but the stronger regulation required wasn’t in the cards due to the opposition from the GOP (which is the Tea Party’s puppet master; see Koch, David and Armey, Dick.)

      In fact, with the screeds decrying ALL regulation coming from the right, I’m surprised ANY punitive action against the big Banks got through.

      P.S. I originally made this reply a few weeks ago but didn’t actually reply to your comment. Oops.

  2. I hope the Tea Party becomes completely irrelevant by the time the 2012 elections roll around.

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