Liberty Reborn

It is funny how I get castigated by know-nothings who think they are know-it-alls. For a year I have been saying that TARP, which President Obama voted for when he was a Senator and thus cannot lay the blame for its spending solely at his predecessor’s feet, did nothing of real importance. All it did was bail out a bunch on institutions that have, for the most part, kept doing what they were doing previously, although on a much scaled back level, and learned that when they are on the verge of failure because of their bad decisions to follow insane government regulations instead of fighting against them that the government will ride in and throw a bunch of freshly printed money at them. Thus giving them absolutely no incentive to be fiscally responsible and to prepare their next excuse for the next crisis and warn us that they have America by the nuts and that if they go under so too will the nation.

And that is not just my opinion that nothing has been done to change the environment that lead to the problems. It is also the opinion of the independent watchdog at Treasury:

The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.

“Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car,” Barofsky wrote.

Since Congress passed $700 billion financial bailout, the remaining institutions considered “too big to fail” have grown larger and failed to restrain the lavish pay for their executives, Barofsky wrote. He said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.

But this is the core of modern liberalism we are talking about here. So do not expect those currently in charge of our government to listen or realize reality is knocking at the door. If they did then everything they had worked so hard to implement over the past century would have to logically be done away with. And they cannot have that.

This entry was posted on Sunday, January 31st, 2010 at 5:05 am and is filed under J.J. Jackson's Daily Opinion. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.