Even a Profitable TARP Is Most Despised Federal Program Ever

HopeTracker| If one ignores Tea Party fuming over the TARP bailout program, sitting down in a quiet room with financial balance sheets and accounting statements instead, the NYTimes writes that that bailout may well earn taxpayers a profit.

A full accounting of financial results from Fannie Mae and Freddie Mac is years off and could still be costly and certainly controversial.

“This is the best federal program of any real size to be despised by the public like this,” said Douglas J. Elliott, a former investment banker now associated with the Brookings Institution, a Washington think tank.

“It was probably the only effective method available to us to keep from having a financial meltdown much worse than we actually had. Had that happened, unemployment would be substantially higher than it is now, the deficit would have gone up even more than it has,” Mr. Elliott added. “But it really cuts against the grain for a public that is so angry at banks to think that something that so plainly helped the banks could also be good for the public.”

Only about 3 in 10 Americans believes that intervention via TARP was necessary to keep the recession and collapse of financial institutions from plunging America and global financial institutions into a far worse situation. Read on at NYTimes.