Treasury Should Pay off Debts with $68 Billion in Repaid TARP Funds

Ten financial groups including JP Morgan Chase and Goldman Sachs were given permission by Treasury to repay $68 billion in TARP funds yesterday.

Treasury announced that TARP funds returned to Treasury will be held in a ‘general account”, which leads to the next question which is where that money is going. Are they going to hold it in case there is another banking meltdown? Is Treasury going to use this money when further money is needed for GM? Or, are they going to use it to fund Obama’s health care initiative, or to fund some other Democrat pork-barrel projects?

It needs to be clear to Treasury that these $68 billion aren’t “found” money. It was money that was created and never apportioned to handle what was termed a national emergency after the failures of Bear Stearns and Lehman Brothers. If this response was successful (as it now appears to have been), It is time to pay down our debt and show some fiscal responsibility.

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

Comments

  • Sam Cass

    June 11, 2009

    I'm not sure what the difference is between paying down debt and using the money to pay for government expenditures. If the government needs to borrow trillions to finance itself, how is $68 billion going to pay down the debt? It's really a trifling amount.

    In the end, all roads lead to Rome.

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