Friday, December 05, 2008

Well, at least we know where all the TARP money went

It's parked in 3 month Treasuries, whose interest rate got bid down to, well... zero... in the last auction.

So let me get this straight. The U.S. Treasury gives cash to banks. The U.S. Treasury issues Treasury Bonds to replenish its cash supply. Banks give cash right back to U.S. Treasury in exchange for 3-month Treasuries. And this cash all zooming around in a big circle is all supposed to help the economy... how?

-- Badtux the Circling-the-drain Penguin

2 comments:

  1. I guess all that is left is to pass out the torches and pitchforks and hit the fucking street, eh? As J. Stewart might say a clusterfuck to the bottom...

    ReplyDelete

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