Well, according to the Treasury, we taxpayers have now been fully repaid for all those Tarp loans. But it’s important to note that those loans were basically interest free, and in fact the banks made money on them.
How?
Well, the interest the Treasury charged was so low as to be non-existent, so the banks just turned around and loaned the money back to the Treasury, earned a higher interest rate than they were paying, and pocketed the difference. They didn’t loan the money out to stimulate the economy, like they were supposed to do, had they been good little boys and girls. So the cup is only half full, if that.
Post a Comment