Are We Better Off With or Without The TARP?


Some market observers opine that we ought to be thankful for the fiscal stimulus provided by Paulson’s Troubled Assets Relief Program (TARP). They argue that the U.S. economy would be in a deep hole without TARP. Probably. But that deep hole might be a better spot than the deeper pit of lost governmental legitimacy we now find ourselves in as TARP socializes the investment errors of wealthy speculators. It may be that the Secretary of the Treasury’s radical action will help us skirt a severe recession and even partially re-inflate capital assets in the near term.

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