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TARP

In an attempt to curb the ongoing financial crisis of 2007-2008 Congress created the 'Troubled Asset Relief Program - TARP'. The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up mortgage backed securities (MBS) from institutions across the country, in an attempt to create liquidity and un-seize the money markets. In March 2009, President Obama decided to bailout GM and Chrysler under TARP.

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TARP, the score four years later

9/17/12

Did it work, or not?

from USA Today,

9/17/12:

Four years ago this week, the United States was on the brink of financial collapse. "If we don't do this (bailout), we may not have an economy on Monday," Federal Reserve Chairman Ben Bernanke, not known for being an alarmist, warned participants in a crisis meeting on Sept. 18, 2008. Soon after, President Bush put the situation even more bluntly: "If money isn't loosened up, this sucker could go down."

Read USA Today's view and Opposing View (No way to run an economy) of the effectiveness of TARP.