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TARP to Blame for Shaky Economy?

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  • Description

    FBN’s Gerri Willis on the consequences of TARP.

  • Duration 2:58
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Former Treasury Secretary Tim Geithner plans to hit the university circuit.

In coming months you see right there he's conducting a series of seminars.

On financial crises in other words Geithner is the may end.

The eminence -- when it comes to teaching your kids about what the nation should do in response to financial crises.

I for -- say you know.

Look for years after Lehman Brothers went out of business and the economy pitched into the darkest recession since the Great Depression the economy is still pop.

Unemployment is still unacceptably high.

Banks may be reporting record profits and big bonuses but on so much of main street the real recovery has yet to start.

And I believe it was the medicine applied to the patient by doctor Geithner that's responsible for all of this.

He claims that what he is president of the New York fed and other regulators did by bailing out banks.

Under an 800 billion dollar program called TARP was the best solution to what otherwise would have been the collapse of the banking sector.

But that can't be the only yardstick measuring the success of tar.

What would eat what we did at the nation was -- to the banks and auto makers too much far too much money in bailout support.

And in fact we're still doing it.

Many on Wall Street strategist we'll tell you privately the market's rally is based on the Federal Reserve's easy money policy and that's a strategy that Geithner is fully behind.

When it comes to tar the former Treasury Secretary is fond of saying that the government made money on that.

Again now.

Banks and financial institutions still -- -- 146.

Billion dollars in TARP funds.

That includes the government's ongoing stakes in companies like Fannie and Freddie ally financial General Motors Chrysler the list goes on.

As well as more than four billion treasury had written off and realized losses of nearly ten billion that taxpayers.

While we're never gonna get back.

If this is success.

What would failure look like.

I can tell you the stories about diners failure to pay 30000 dollars in taxes when not long later -- Treasury Secretary he was in charge of the IRS.

But I'm not gonna go there.

As a regulator he believed like his mentors Bob Rubin and Larry Summers that failure containment was what needed to be done.

Regulators come -- after a crisis and they clean up.

We know what that means -- problems they never get solved.

Our nation's largest banks are still too big to fail and there's not a darn thing and Dodd-Frank that prevents the government from bailing them out.

Over and over and over again.

Only one thing is for certain the next bubble bursting will be bigger and more threatening.

And next time it will be a real crapshoot whether the government even has the resource is to clean the mess up.

Instead of teaching seminars on what to do when a crisis may -- Geithner can teach them what not to do.

Well.

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