Monday, April 20, 2009
Obama cautious as banks want out of TARP
I am a bit skeptical of President Obama's decision not to allow banks to pay back their loans from TARP. Unless we want to nationalize the banking system, we should let companies get out from under our assistance and fend for themselves once again. I am not so sure that we would have taken the same drastic course of action if we could have dealt with the banks again because at some point you cannot bail out everyone and then force them to stay under your will. Albeit, I am pretty sure Goldman Sachs and JPMorgan probably would like to pay the money back solely to get rid of some of the nice restrictions that the government has placed on the loans, they should have the right to pay back the government whenever they can under the condition that they will not be helped once again if they end up squandering their profit margins of today. We need to teach accountability to these companies and by feeding their growth we do stand to see improvement in the economy with loans being processed, but in the long run we are telling companies that even if you are a significant cause to your own problems, the government will help you if you are important to the economy. I do not mind helping out banks in need right now because we do need to stimulate the economy, but if companies want to give it a shot on their own, then just start regulating the industry through legislation in Congress rather than delaying the banks opportunities to demonstrate their worthiness.
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