Question about TARP? I keep reading about all the

[doc03]

companies that are repaying TARP. Today in the USA paper it says AIG received a $182 billion federal bailout package. According to the report their outstanding debt is now $95 billion. I assume that means they paid back $87 billion. I have seen other reports over the last several months that other companies have paid back their TARP money and also GM has paid back some loans. My question is where is that money going? Shouldn't our deficit or debt be dropping since we are receiving these repayments? I did see a report a few days ago that the deficit had dropped 8% since last year but it was attributed to the increase in GDP.

[Yupster]

1. The money goes into the general budget, so yes

it is an unexpected windfall to the budget, so it makes the current budget deficit even more frightful than it looks because this TARP money won't be coming back in forever.

[doc03]

2. Yes but I don't see any unexpected windfall, like I said

they attributed the reduced deficit this year to GDP growth only from what I read.

[Yupster]

3. That's real bad then isn't it?

Luckily our congresscritters are working together to solve the problem.