How long do you think it will take for the economy to recover?
The economic crunch disrupted the auto industry and its long chain of suppliers and dealerships. Had the government not extended $82 billiion of TARP to General Motors and Chrysler, tens of thousands of workers could have been out of jobs, as well as further damaging the economy.
Was it successful?
Troubled Asset Relief Program and Banks
As the banking system ground to a halt in the fall of 2008, then President George W. Bush recognized that the United States' banking system was on the verge of collapsing and that drastic measures needed to be taken to protect American's savings and keep credit flowing. TARP kept the naughty banks open on Wall Street that were ulitmately reponsible for the crisis by loaning taxpayer's money to them to be repaid with interest. Nearly $250 billion dollars was allotted for the program.
Where did the money go and who paid it back?
Use the following link to a Wall Street Journal aritcle that uses an interactive map to show by state where the TARP money was used. Also included is a listing of the amounts given and repayment made.
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As the housing market spriralled towards a black hole, the government stepped in to stabilize the situation. More than 7 million Americans took advantage of this opportunity to refinance their homes and avoid foreclosure. This helped both the shaky banking industry and housing.
