Neil Barofsky, a lifetime Democrat, was picked by then-President George W. Bush (on the advise of his Treasury Secretary Henry Paulson) to police how the banks spent the $700 billion in TARP economic stimulus funds that should have helped the United States avert the recession that all Americans now suffer under. Testifying before the Senate Finance Committee on April 20, 2010, Barofsky said: “To declare TARP a success is revisionist history. TARP was supposed to restore lending, and that didn’t happen.”
TARP, according to the political rhetoric, was supposed to buy up the foreclosed mortgages that were strangling credit and bankrupting both small business entrepreneurs and working class stiffs who were impacted by the lack of financial liquidity in the United States that was caused, initially, by the collapse of Indonesia’s largest financial institution, Bank Century when it lost 6.7 trillion rupiah ($720 million). That bank failure came on the heels of the insolvency of Indonesia’s central bank, Bank Indonesia a decade earlier. The money Bank Century lost was owed to—you guessed it—America’s Wall Street banks who advanced them massive loans to modernize their infrastructure: roads and critical services to prepare them for the transnational princes of industry bringing the third world into the 21st century—with American factories and American jobs.
The exporting of US jobs to the third world that began with the never constitutionally ratified North American Free Trade Agreement enacted by the 103rd Congress (which can be repealed since it’s a law and not a treaty), created the economic mechanism that, combined with another Clinton-era law orchestrated by then community-organizer Barack Obama in Chicago that forced Illinois banks to make bad mortgage loans to minorities that Fannie Mae had agreed to underwrite. In 1999, Bill Clinton’s Republican-controlled 106th Congress amended Public Law 95-128, 12 USC § 2901, Jimmy Carter‘s 1977 Community Reinvestment Act to reduce what that legislation called discriminatory credit practices against minorities in impoverished areas—a banking practice known as “red-lining.” The Clinton law, actually concocted by Republicans to curry favor from minorities voters, the Gramm-Leach-Bliley Act, was officially known as The Financial Services Modernization Act of 1999. It forced banks to make home loans guaranteed by Fannie Mae to low income families who were not “sound financial risks” for mortgages. It should have been called “The Mortgage Industry Implosion Time Bomb Act of 1999” because the 106th Congress lit the fuse. It took six years for the economic time bomb to explode and for the American mortgage industry to implode.
TARP would have…….
- (“…an “A” in Shakespeare because that person is so removed from common American thought that he would never represent me – or the conservative, constitutional ideals I stand for….”)Jon Christian Ryter – Ivy Leaguers Make Bad Presidents, Part 1 (gunnyg.wordpress.com)
- BAILOUT by Neil Barofsky: Book Review (jjcollinsauthor.com)
- Timothy Geithner Peppered TARP Inspector General Barofsky With F-Bombs: Book (huffingtonpost.com)
- TARP: They got the Gold Mine, you got the shaft. -OR- Where’s MY f*ckin’ Bailout? (warmsouthernbreeze.wordpress.com)
- Barofsky Gets Flailing Criticisms of His Book on TARP (news.firedoglake.com)
- Senator Richard Shelby receives praise in insider account of the bank bailout (al.com)
- Books of The Times: ‘Bailout,’ by Neil Barofsky (nytimes.com)
- Barofsky Set to Enter National Debate With Book on TARP’s Failures (news.firedoglake.com)
- CULTURE OF CORRUPTION: TARP Was Even Worse Than You Think: “An Abysmal Failure,” Barofsky Says. … (pjmedia.com)
- Bungled Bank Bailout Leaves Behind Righteous Anger (ritholtz.com)