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Tuesday, January 13, 2009

Obama: Let Bush hand out the rest of the TARP funds!

You would be a fool if you were to let Bush hand you half of a problem. In fact, there is no reason why the Treasury, as it stands now, can't roll out the rest of the TARP funds they handed out--at least the first half of it--with no true oversight or way of assessing what they did with the TARP funds in the first place. They started it, so they should be able to finish it.

The reason why I take this position, because it looks painfully obvious that there is politics, being played in the financial markets. High rolling investment bankers and industrialists, were always conservative and roll with the GOP. This bail-out, handed out with ease to the financial markets, in relation to the more than stringent stipulations on bail-out for the auto industry, is proof to who's side Bush and the GOP lend their support to, first.

Now, the automobile industry got their bail out, at the last minute Bush gave it to them, with much wrangling on how it should be rolled out. The same did not happen to TARP, the same is not happening to TARP post first disbursement and the same is not happening with the second roll out to come. In fact, Obama ha asked for Bush to roll out the rest of it before he leaves office. Better that than you doing it yourself--then you are culpable for the entire kit and kaboodle.

Bush is one shrewd cat. If it fails and blows up in every one's face, both he and Obama are left to blame--he less that Obama, because he has the position of being forced to act, rather than for Obama, who is and will have to act after he receives new evidence on how the TARP is and has actually worked.

If it works out on the other hand, Bush will look smart for acting in the first instance and Obama, will look as if he is forced to follow conservative doctrine. That in itself, speaks volumes.

Obama is in a no-win situation with the TARP bail out. The best he can do, is simply, go along with what the bail-out plan was and then, add retro-active stipulations on transparency in how the money--owed to the US government--is to be retrieved and spent and how we have to monitor progress, moving forward. Hence, the new calls for newer ways of assessing economic sectors by he and his team.

So far, allowing Bush to roll out the rest of the TARP money, is the best and only bet Bush could have allowed Obama to have.
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