3 ms·
>> and the govt made a profit from TARP. TARP had three players: TARP Fund: via The US Government (fiscal), POMO/QEx: via The Fed (monetary), and The Banks
by TuringNYC 4y ago
>> and the govt made a profit from TARP.
TARP had three players:
TARP Fund: via The US Government (fiscal),
POMO/QEx: via The Fed (monetary), and
The Banks (those bailed out)
TARP "made a profit" by the Fed printing money and buying assets at way above market value from the banks. It didnt cost anything because we just printed the money, but there was a cost...inflation. We just spread the cost secretly to everyone.
Real impacts of printing money: Houses jumping in value by 40 or 50%, meanwhile:
https://www.costar.com/article/266860380/most-us-households-cant-afford-a-median-priced-home https://www.costar.com/article/266860380/most-us-households-...
Most US Households Can't Afford a Median-Priced Home
https://www.nahb.org/blog/2022/03/36-million-households-cant-afford-a-150000-home/ https://www.nahb.org/blog/2022/03/36-million-households-cant...
"36 Million Households Can’t Afford a $150,000 Home"