Quote:
Originally Posted by OneSickPsycho
Exactly.
Now, where is that money going to go?
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I believe repayments of and unallocated TARP funds have been restricted to only go toward debt reduction after some legislators were clamoring to use the money to fund another round of stimulus. Either way it has become a bit of a shell game though.
Even as TARP money is being repaid, turning what was originally a $700 billion program in to a currently estimated $25 billion program, Fannie Mae and Freddie Mac continually need more to meet their obligations. Those two organizations, which were taken over by the government, have already required well over $100 billion and estimates for the total amount they will require run up to $1 trillion. The fact is these two organizations, which were run as government-sponsored enterprises until their takeover in 2008, guarantee over half the mortgages in America and could end up costing taxpayers more than TARP and Obama's stimulus combined.