Without Wall Street, Ryan Stops Pumping TARP

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As long as Wall Street firms are not the sole beneficiary of the TARP, Congressman Paul Ryan says additional funds cannot be justified.

Ryan Press Release
Excerpt:
WASHINGTON – Earlier today, Wisconsin's First District Congressman Paul Ryan voted to prohibit the release of the second half of funds allocated for the Troubled Assets Relief Program (TARP).

This is not a flip-flop by Ryan but a demonstration of consistently flawed logic and reasoning from the beginning. Ryan's position has nothing to do with "not using taxpayer money" but more to do with who is the winner.

The day before however, Congress passed H.R.384, which expands the mission of the TARP to include other troubled American business assets encompassing our ailing economy.

The original intentions of the TARP were misleading if not proven useless in just two months of implementation. Ryan only first objected to the TARP use when the Big 3 asked for help, soon to be followed by others asking for TARP assistance just as well. Ironically, the only money fully accountable from the first $350 billion of the TARP was the $15 billion that went to the Big 3. Even if they burn through it, at least taxpayers will know. The rest of the TARP was flushed down a dark deep hole.

I agree with certain aspects of a disapproval resolution regarding the TARP, but for the exact opposite reasons Ryan does. The gate was never closed on the circumstances that led to the major economic downturn in the first place. All the machinery that caused the economic downturn have not only been left in place, its tanks have been refueled. Both Congress and the Fed, continue to push a failed debt-based economic format built on easy credit, low interest rates and globalization. Despite widespread economic decline across nearly all American business and industry sectors, Ryan believes that if rescue program funds aren’t used solely to help financial institutions, the TARP's original intentions as he likes to put it, the funds should go to no one at all. Yet, to acknowledge there is a major economic tsunami on the near horizon if we do nothing - says it all. Ryan, the policy maker, should have thought about this when he courageously voted for the TARP. He was among the first to open the barn door.

In retrospect, Ryan voted for the failed half of the TARP less the Big 3, and now votes against any chance for TARP funds to assist troubled American assets.

But the most interesting spin of his position will soon come from his local media enablers including the Wall Street Journal who described Ryan as “courageous” for pumping the TARP funds in the first place. They undoubtedly will now find him just as equally “courageous” for stopping. For all the wrong reasons.