As we continue to hear about the front and center news of President Elect Obama's plans to destroy our country, behind the scenes his new treasury secretary Tim Geithner is concocting plans of his own.
Reports tell us that he has been working night and day to re-tool the TARP program to figure out a use for the remaining $350 Billion. He is working on a plan that will provide support to municipalities, small businesses, homeowners, and other consumers.
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/08/AR2009010804109.html
He needs a new plan of action due to the now obvious misuse of the original $350 Billion given to major investments banks. His new plan will focus on "the people," and the $350 will be just the beginning. I would expect to see TARP 2 before we reach the half way mark of this year.
The treasury now has the ability to focus its support on "the people" because behind the scenes over the past few months major investment banks such as Goldman Sacs and J.P. Morgan have now become depository institutions. This is important because the Federal Reserve can now just send them money directly, without having to go through a cumbersome TARP programs.
The major banks will be sent hundreds of billions all year to stay solvent, and the early favorite for the most tax payer money flushed down the toilet looks to be Bank of America as they continue to crumble under the disastrous acquisitions of Merrill Lynch and Countrywide. The amount of support sent to this company behind the scenes directly from the Fed could easily top AIG's $200 Billion and counting.
Keep your eye out for Geithner's new plan for Massive Economic Destruction of Wealth, code name MEDW or TARP 2.
