TARP-MARP

Somebody may object our previous post by repeating statements from the officials that the Troubled Asset Relief Program (TARP), one of the taxpayer funded help programs  for the banks, wasn't actually a subsidy but a profitable investment. Nope! It has almost no chance of breaking even let alone become profitable.  The myth buster on zerohedge:

Myth Buster: TARP Bailout May Realize A Positive Return for Taxpayers?

The bottom line being:

"The Office of the Special Inspector General for the TARP) pouring ice water on the seemingly overly optimistic Treasury:

"It is a widely held misconception that TARP will make a profit...... As of March 31, 2012, $470.1 billion is obligated to TARP programs.6 Of that amount, $414.6 billion had been spent and $50.2 billion remained obligated and available to be spent.  Taxpayers are owed $118.5 billion as of March 31, 2012.

"

Some other sources came with projections for even larger losses, like CNN Money bailouttracker  estimating $356.2 billion invested and just $118.5 billion paid back leaving us with outstanding  $237.7 billion.

But this is not the last word! As per zerohedge:

"Nevertheless, don't think the buck stops here--SIGTARP report indicated $50.2 billion of TARP funds remain available as of March 31, 2012 to be drawn down by TARP recipients under three of TARP’s 13 announced programs mainly supporting banking, housing and auto sectors.  That means the $118.5 billion TARP loss concluded by SIGTARP could get even worse as more fund is still to be disbursed."

Not to mention the various QEs and the secret  loans to the Wall Street Banks (Bloomberg: Wall Street Aristocracy Got $1.2 Trillion in Secret Loans). 

Well ok, we must agree, given the track record of banks this might be called a profitable investment ...