Unbelievable. Except that it is. It is totally believable and very typical of America's wasteful, mismanaged government:
WASHINGTON-(Dow Jones)- The U.S. Treasury may have significantly overpaid for its investments in financial institutions, a government watchdog said Thursday, as criticism of the $700 billionfinancial rescue continues to build.
"Treasury paid substantially more for the assets it purchased under the [ Troubled Asset Relief Program] than their then-current market value," Harvard Law School professor
Elizabeth Warrentold the Senate Banking Committee.
Warren, who chairs a five-person congressional oversight panel overseeing the Wall Street rescue plan, said a report being released Friday by the group includes an analysis of 10 TARP transactions. Extrapolating that analysis for all of the purchases made by the Treasury in 2008 suggests Treasury paid
$254 billionfor preferred stock and warrants worth approximately $176 billion, a shortfall of $78 billion.
According to this report, more than 10% of the TARP money has been wasted. And as I'm typing this blog post the Senate is trying to pass a $900 billion stimulus package. President Obama's shrill calls for quick action are irresponsible in the wake of what amounts to a scandal with previously authorized funds. If the government has the same track record with the stimulus money that it's had with TARP, it'll waste over $100,000,000,000. Does wasting $100,000,000,000 of what would otherwise be productive capital sound like a good plan to fix an economic downturn?
Thank goodness that people are taking an active voice in their government and calling Congress to complain about the stimulus package. Check out that link and read the CNN article. People are making an impression on their Senators and Representatives by calling in such great numbers to voice their frustrations. You can be a part of history by participating. Help flood Washington with phone calls and e-mails calling for failure of the stimulus package. Don't just call your Senator. Call other Senators. Call all of them. They're all planning on spending (wasting) your money, so why not?