EVERYONE is at the trough now…. Trucking TARP!
All of these stories have been released in the last 4 hours if you can believe it..
1. Prudential, Allstate Said to Be Among Insurers Cleared for TARP
Prudential Financial Inc., Hartford Financial Services Group Inc. and Allstate Corp. are among six insurers approved by the U.S. government for bailout funds after investment declines eroded capital across the industry.
2. Schwarzenegger Seeks $6 Billion Loan.
Treasurer Bill Lockyer, who in a letter to Treasury Secretary Timothy Geithner yesterday asked that the federal government become a standby purchaser of short-term notes in the event of default. Such a guarantee makes it easier for states to purchase the bond insurance policies needed to attract investors.
And my personal favorite from the last 4 hours.
3. YRC trucking to apply for government bailout funds
TARP was passed even though Americans were 10-1 against it for the sole purpose of helping BANKS with troubled assets. Then Goldman, Morgan Stanley and all the bankrupt insurance companies turned themselves into “Bank Holding Companies” so they could get a piece of the pie.
Now we have trucking companies and the State of California at the trough.
In April it was reported that there was less than 100 billion left in the 800 billion tarp fund as Citigroup, AIG, Fannie and other black holes sucked up the first 700 billion in just a few short months.
Is everyone going to get “TARP”. How much of the 100 billion that was left in April is even left at this point? What happens when this runs out, do we just go back to the Fed continuing to expand its balance sheet beyond the 2 trillion of worthless junk they have already taken from the banks?
People asked me why I thought the TARP was a bad idea in the first place. THIS IS THE REASON.. It is because in a REAL debt bubble deflation (which is what we are going through), printing money only works if you are willing to print enough to bankrupt the country. This debt bubble is too big to paper over without destroying the dollar and our country and the best thing the government can do is NOTHING. The less they do now the better off we will be in 5 years.
TARP Part II is the PPIP (Public-Private Investment Program). If PPIP never gains any traction they will just pass another TARP. It doesn’t matter if Americans are 20-1 against it. I think if people were 100-1 against it and were vocal about it then MAYBE, just MAYBE it would fail.
That is why I write these non-market related blogs from time to time. It is in hopes that people WAKE UP.