175 Billion in TARP bank bailout money will go for deficit reduction, not public works job programs

[Better Believe It]

Obama set to extend bank bailout fund
CNBC: $175 billion in TARP funds will also be dedicated to deficit reduction
December 9, 2009

WASHINGTON - The Obama administration plans to announce on Wednesday that it intends to extend the life of the $700 billion financial bailout fund until next October, officials said Tuesday.

CNBC also reported that $175 billion in funds from the Troubled Asset Relief Program (TARP) would be dedicated to deficit reduction. The amount represents the total the Treasury expects to be repaid by banks through 2010.

One official told Reuters that the administration was expected to pledge to use no more than $560 billion from the fund. Another said the plan would be to tap the program to help homeowners secure mortgages through the government's housing program and to free up credit for small businesses to spur job growth.

At the end of November, $560 billion had been allocated from the TARP program, the same amount the administration is now expected to declare as a cap.

http://www.msnbc.msn.com/id/34341033/ns/business-economy_at_a_crossroads

[havocmom]

1. OK, can we raise tax rates on the guys who profited by TARP and are paying back for bonuses?

Can we take some taxes from them (maybe up to the rates of Reagan) and spend it on creating public works jobs for people who really do help the economy?

[TwilightGardener]

2. The deficit reduction from 175 billion will come from what is paid back by banks.

I think that's different than the unused TARP funds that will be used in the jobs bill being proposed.

[Pirate Smile]

3. The $$$ that was never used but was allocated for TARP is what can be used for the new jobs program

The $$$ paid back from the banks was directed in the legislation to go toward deficit reduction.

Two different pots of $$$ with different requirements but any reason is a good reason for some people to bash Obama.

[rockymountaindem]

5. Exactly. These are two seperate things.

The unspent money will be for job programs, the recouped money will be for deficit reduction. No complaints there.

[Better Believe It]

7. 560 Billion has been spent and is the CAP. 175 Billion of that has been repaid ....

and is going for deficit reduction rather than jobs creation.

Why not use that 175 billion for jobs?

[Cant trust em]

4. Your OP isn't substantiated in the link

I think you might have copied the wrong link.

[Better Believe It]

8. 175 billion of the money repaid is going to deficit reduction, not jobs

Why not spend it for jobs?

[Cant trust em]

9. That's not what I'm talking about

The content you posted in your OP doesn't match up with the article.

It's like the link you've provided is for a different article.

[Better Believe It]

10. Well I am! Why don't you want to talk about it? Don't you think that

175 billion ought to be spent for job creation rather than toward the deficit?

[Cant trust em]

11. I would prefer that, but you should link to the actual content

instead of posting inaccurate information.

[damntexdem]

6. Replaying FDR's mistake of 1937.

Reducing the deficit during a depression/recession, rather than creating jobs and stimulating the economy.