Saturday, September 26, 2009

Neil Barofsky Special Investigator for TARP: Financial System May be In A “Far More Dangerous Place”

From The Huffington Post:

Neil Barofsky is the man who tracks the historic bailout known as the Troubled Asset Relief Program, or TARP. The 39-year-old special inspector general monitors a dozen separate bailout-related programs that now account for nearly $3 trillion in financial commitments. A former federal prosecutor, Barofsky has subpoena power and has launched about three dozen investigations since being named to the post in December 2008. In an audit released in July, Barofsky made clear that he was intent on demanding transparency from all quarters -- including the U.S. Treasury. His next audit is due in October. During an interview with the Huffington Post Investigative Fund, Barofsky made some striking observations. Among them were:

1. He found hundreds of banks capable of tracking their use of the TARP money - despite claims by the U.S. Treasury that the task was impossible.

2. If the purpose of the TARP rescue was to increase lending, it has failed.

3. The U.S. financial system, now dependent on bigger and fewer banks, is shakier than ever.

So after hundreds of billions down a rat hole, we are in more risk then when we stated, I am not surprised. I never bought into the whole TARP idea in the first place. I don’t buy into the whole “too big to fail” nonsense or that jazz about “systemic risk”. The whole handling of the financial system meltdown seemed haphazard to me, allowing some banks to fail here and saving another one over there, all without much rhyme or reason. Turbo Tax Timmy Geithner always comes off as an incompetent and a liar to me.

Something is clearly afoot regarding TARP. Geithner seems to be trying to stymie Barofsky from digging deeper into TARP. The Other McCain has been following Barofsky and the other inspector generals who are under assault from the Obama administration with his IG-Gate Investigation. Read up on IG-Gate, something tells me we won’t be hearing the last of Barofsky.

Via: Memeorandum

Via: The Huffington Post

Via: The Other McCain


SSG_E said...

I see a double dip crash coming.

Clifton B said...


I see the same thing coming too!

Angie Lee said...

Money is fungible and cannot be tracked? EXCUSE ME? Sounds as though Treasury's position and actions are in direct violation of Article I, Section 9 of the U.S. Constitution: "A regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time." ALL PUBLIC MONEY. That seems pretty clear, not open to interpretation in any way.

And what is this $3 trillion figure? I thought TARP approved $787 billion? How can more funds be appropriated than legislated for - as also CLEARLY stated in Article I, Section 9 - or was more legislation covertly passed by our "most open and ethical congress evah"? Did I miss something? And why has money specifically appropriated via legislation for "toxic asset relief" been used for everything BUT that purpose?

Like you, Clifton, I never bought into this nonsense from the start. Many of us knew it was a crap sandwich and the public was overall against it in the first place, yet congress (including Mr. Barack Obama) along with the help of the Bush administration rammed it down our throats - against our wishes.

I still think these cartoons I've seen depicting our economy as the Titanic are not that far off the mark. We're barely treading water right now, and our government keeps tying more cement blocks to our ankles. Our fiat currency will be exposed as the worthless bits of paper it is and when it collapses, being backed by NOTHING and the precious metals previously backing it having already been confiscated by the government, how do they expect us to function and survive as a nation, as a society, as individuals - or do they expect that at all? Perhaps that is the intent.

Something is afoot with far more than TARP, I fear. The path our leadership is leading us down is one of certain destruction, and they seem to be doing so willingly and with an element of malice aforethought, perpetrating the death and destruction of our nation, of our society, and most certainly of individuals.

I don't think we're looking at a double-dip recession. I think we're looking at the utter collapse of our financial system and ultimately the sovereignty of our nation. I've often compared the coming deluge to the collapse of the Teton Dam. The government is furiously shoveling dirt from one hole to another and eventually the leaks will open into a breach, sweeping us all away. If you're interested in my "magnificent insights" (and don't mind a bit of "colorful" language), I wrote about this last October:

Clifton B said...

Angie Lee:

I LOVE the way you quote the Constitution so easily, any chance you will run for office?

That "fungible" line sounds so much like Geithner. He was pretty fungible with his taxes after all.

Our fiat currency will be exposed as the worthless bits of paper it is and when it collapses, being backed by NOTHING and the precious metals previously backing it having already been confiscated by the government, how do they expect us to function and survive as a nation, as a society, as individuals - or do they expect that at all? Perhaps that is the intent.

I am glad to see I am not the only one who is alarmed by Fiat Money. Those trillion dollar pumps from the Fed are watering down our buying power!

Perhaps the goal is to truly collapse our economy, thus forcing us to "collectively" save ourselves and in the process make it near impossible to return to capitalism.

I did not know you had another blog Angie Lee. I am checking out that post. Thanks!

Angie Lee said...

Clifton: Unlike many members of our Congress appear to have failed in doing, I have actually READ the Constitution. Unbelievably, I did so (and memorized rather significant chunks of it) in SEVENTH GRADE for a class - *GASP* in a public school, no less. (So much for education today, huh? Lordy, do I miss the 80s! LOL)

I LOVE our founding documents. I think they are among the most profound words ever to find their way from man's mind to paper. Alas, there will be no public office for me. The first problem lies in the fact that I am a regular working Jane and can't afford to buy my way into office like our current leadership must. The second is that I'm on the government "hit list," suffering a chronic and incurable (not to mention COSTLY) condition, and I'm scheduled for an appointment with the death panel shortly after Obamacare passes. (I have MS and although I *could* live a relatively normal lifespan, the cost to treat my symptoms will be too burdensome on society, regardless of the fact that I am still contributing heavily to the IRS and have insurance through my employer, because MS is so unpredictable, dontchaknow.) Finally, I'm just too weird and too contrary (and too vulgar at times) to be palatable. It would be like trying to shove a square peg into a round hole.

Yeah, I have a couple blogs floating around out there and you may have seen some of my work at Right in a Left World (I noticed you're a follower there - awesome!). I've kinda been taking a "blog-cation" the past couple months while I was hugely pregnant but now that I've got my bundle of joy I might pick up again. Maybe. :D

The Vegas Art Guy said...

Clifton, I also see a double dip recession. Hell if I can understand economics 101 why can't the people in Washington?

And Angie two things.
1. Congrats on your child!
2. I am a teacher and kids are far smarter than they're given credit for so don't blame them unless you want to start a fight with me, and I teach at an urban HS in Las Vegas. They want to learn, some of the desperately but because of the government (big surprise there) it's harder and harder to do so. No Child Left Behind needs big changes or it will take decades to undo the damage. And if we want our kids to be educated then we need to get involved locally, even if you have no kids in school.

Angie Lee said...

VAG: First, THANKS! I'm an old pro at this mommy business, this being my fifth child, ranging in age from 18 years to the newborn.

I know and agree 100% that kids are smart and eager to learn (even if they don't realize it themselves! LOL). I don't blame them for the failings of the education system and (for the most part, with the exception of a few, just as you find in ANY profession) don't blame teachers. I know their hands are tied with crappy programs like NCLB. I tried homeschooling my boys for a year but struggling with my work schedule (I'm the breadwinner in the family, so that didn't help me in that endeavor) sent them back to the public schools. We all notice the difference, especially the boys, since mom's program was quite a bit more... rigorous... than what they had been used to in school.

All through their lives I've instilled in them a love of books and pursuit of knowledge, and they're wicked smart little boogers. My 18yo is now in an alternative ed. program and seems to enjoy it far more than he ever did the regular school, and I have confidence that he will be a leader of men. He's forever picking my brain about something that's piqued his interest, and his interests are as varied as my own. Makes me proud!

Clifton B said...

Anglie Lee:

Many of today's students would do well to memorize the Constitution rather than waste time praising a one termer.

Despite your reasons, you should still run. People like you are going to be en vogue come 2010 and 2012. You have an everyday Palinesque quality about you.

BTW, I am a bit of a potty mouth too. Here is a blog I am sure you can appreciate:

Clifton B said...


Actually I think they see it too, but have some other reason they are not telling us why they want to go there.

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