All markets will go down big, as banks and automakers are selling to repay TARP?

Discussion in 'Economics' started by crgarcia, Dec 15, 2009.

  1. If they are selling (and they held billions), who is buying?

    The markets rallied after banks were buying because technical analysis traders detected an uptrend, and mutual fund managers (measured by comparing to the S&P 500), were underperforming the index; so they tried to catch the market.

    Markets are about to go down big again?
  2. pitz


    These guys are repaying TARP because they want to be able to legitimately say to the government, "give us another TARP", when the markets crash again. Setting up for a re-run.

    Politically, it would be impossible for the Administration to implement TARP part 2, when TARP part #1 hadn't even been paid back.

    This way, the bankers look 'responsible', and Obama can stand up and say, "the banks paid us back with interest, so there's no harm in doing it over".

    A logical fallacy, of course. But it makes for good press.
  3. Enh. Far fetched. There will be no political capital left for TARP 2 when this bubble bursts. No amount of logical backflips like the one you described will work with the populace at large.

    I think they're wanting out of TARP because they don't want to be under the thumb of the USG. And who does?
  4. Illum


    They see what is happening in england, they want to get away from government.
  5. wmb


    no bonuses for nobody unless tarp is paid back in full! $500k in a bonus not this year. that will bring the tarp funds back ..maybe!
  6. So you too see another crash coming?