And another program extended once again, this economy is a lot weaker than most think, as long as they keep feeding the economy the way are, nothing will ever be normal again for this economy. Dec. 9, 2009, 9:30 a.m. EST · Recommend · Post: Treasury extends TARP through next Oct. By Greg Robb WASHINGTON (MarketWatch) -- The Obama administration is extending the $700 billion financial-rescue program until next October, Treasury Secretary Timothy Geithner said Wednesday. The Troubled Asset Relief Program had been set to expire on Dec. 31. In a letter to Congressional leaders, Geithner said the program will be used to aid homeowners facing foreclosure and to provide capital to small and community banks so that small businesses have access to credit. Some funds may be used to increase Treasury's contribution to the Term Asset-Backed Securities Loan Facility. Treasury does not expect to deploy more than $550 billion of the funds, Geithner said. He said $175 billion in repayments is expected by the end of next year.
Yeah, agreed. Govt is expecting a new fresh wave of foreclosures in Q1, 2010, as many adjustable mortgages will be coming due then, and there will be some up-tick in many mortgage rates, albeit not as severe as expected, given the historical low rates that we are seeing. Nonetheless, this all makes me quite sick......
This is an admission that the TARP spent to date failed. TARP was supposed to "make credit markets operate normally". It is clear that the banks refuse to lend, perhaps in anticipation of more "trickle down" stimulus and TARP programs. Now, the government is finally doing what I've felt they should have done from the start :cut out the Wall Street middleman and give money directly to those who need it for job creation and not propped up earnings and bonuses.