President Obama has made the claim that “we made money” from repayment of TARP money by some banks.
Really? How’s that?
First, we borrowed the money to “bail out” these companies. And when the companies paid it back with interest at the same low rate the government paid to borrow the money, just how did we make money?
On top of that, Obama is still holding that money AND the repaid interest and looking for ways to spend it – all the while paying MORE interest.
No. I believe we would have only just broken even if the paid off loans were in turn used to pay off our debt.
By holding on to the money, we are taking a financial bath.