Thune introducing measure today to drop hammer on TARP funds
From Politico:
Sen. John Thune is trying to build support to end the $700 billion Troubled Asset Relief Program, a move bound to cause heartburn for Democrats wary of strong anti-bailouts sentiment among voters.
Thune, the No. 4 leader in the Republican Conference, plans to introduce a one-page bill Tuesday that would bar Treasury Secretary Timothy Geithner from extending the agency’s authority to spend TARP’s unobligated funds — about $200 billion — beyond the scheduled end date of Dec. 31. The legislation would not affect the bailout funds already handed out to troubled firms such as Citigroup and General Motors.
Thune told POLITICO that he wants to ensure that remaining TARP funds “don’t get used as a political slush fund and are used actually for a purpose that I think most people in the country would support — and that is to pay down the federal debt.”
Thune also noted that Geithner never responded to his letter inquiring about the administration’s intentions for TARP past the end of the year.
and….
The support of key conservative groups could help Thune’s campaign gain traction on Capitol Hill. Both Americans for Prosperity and Americans for Tax Reform will send out letters of support Tuesday.
While climate change and health care legislation are top priorities, Americans for Prosperity will be communicating with its 800,000 members on the Thune bill, said Phil Kerpen, the group’s policy director.
“It is an unnecessary and unaccountable delegation of power from the legislative branch, and we’d like to see it sunset on schedule at the end of this year,” Kerpen said.
Note that this bill is different from Thune’s Government Ownership Exit Plan legislation which sets a date certain for the federal government to sell off its ownership interests in private companies. And I’m told that although Politico uses the figure $200 billion in the story, there is actually roughly $300 million remaining in the TARP fund.
(Might as well start paying it down now before Obamacare inflates it another 3 trillion.)
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Comments
So he votes to approve the funds in the Fall of ‘08… but now doesn’t want us to spend it all. I’m all for correcting perceived mistakes, but unless he explains the inconsistancy it seems to be simple political hypocrisy.
Braden
Three reasons:
1) The purpose of TARP was to prevent a financial meltdown. This has now passed.
2) Obama pushed and got through a stimulus package just as big that has made unemployment worse.
3) The biggest threat to our national well-being is the deficit. This reduces the need to borrow more money from the Chinese.
But in the interest of intellectual honesty, I’m sure you will call Johnson and Herseth hypocrites though if they don’t support Thune’s bill.
“1) The purpose of TARP was to prevent a financial meltdown. This has now passed.”
Sure about that, considering the number of banks that have failed this year? No matter how Thune, his campaign manager Brasell or you try to spin Thune’s vote for a bail out, it still makes him a hypocrite. Check out the Sept. 1 article over at the Hog House Blog in which Brasell tried to blame President Bush for pulling a “bait and switch” leading Thune to support it. Pathetic.
Anonymous,
I will respect your opiion in disagreement so long as you call Johnson and Herseth hypocrites for not supporting Thune’s bill. Otherwise, you are just a hack.
Braden, yeah, kinda like Obama being all tough about Afghanistan back in the spring and how he’s the Wimp-in-Chief.
I thought people were allowed to change their minds when circumstances do.
Troy: I’m not saying I disagree with Thune here. I think TARP worked and the funds out to be allocated towards something else. It just smells like politics to me: he votes for TARP I under Bush, then votes against TARP II when Obama becomes prez, and now wants to end it. And by the way, I have seen no evidence that the stimulus package made unemployment worse. It seems to be far more likely that unemployment would be much higher without the stimulus money introduced into the economy.
Anonymous: life and death decisions often take time to make. Had the previous president taken more time to think about the consequences of his actions rather than being ‘the Decider,’ perhaps he would have only passed one war on to this president rather than two.
“Otherwise, you are just a hack.” Pot. Kettle. Black.
Have Johnson and SHS said they were not supporting his bill? I wouldn’t support it either. It was brought forth only for political gains: he’s up for re-election next year and he wants his constituents to think he’s ‘fighting for South Dakota.’ Whatever.
Anonymous:
1) I’m on record being against TARP when introduced, expressed my disagreement with Thune at the time, praised Herseth and Johnson for their vote and didn’t question Herseth or Johnson’s motives.
2) I don’t know what Johnson and Herseth will do and my question wasn’t directed at them but asked if the person (is it you since it was “anonymous’) would hold Herseth and Johnson to the same standard they are holding Thune.
Braden and anonymous: Why are you so reluctant on everything to not take Thune’s position at face value? All three of us agree TARP wasn’t a good thing. Why can’t you at least concede that at minimum Thune is saying further need to disburse TARP funds is necessary or at maximum that he has the courage to admit a mistake?
Good move! It’s the right thing to do.