In a report released today, the Inspector General of the government’s Troubled Asset Relief Program, Neil Barofsky, announced that taxpayer exposure could run as high as $24 trillion, a number most of us cannot imagine. “Under the worst of circumstances, the report said, the government's maximum exposure could total nearly . . . $80,000 for every American.” In an article from Associated Press and published on Yahoo News, the report provided further details of the potential for massive government spending.
While the number represents the “worst case scenario,” it demonstrates the depth to which the government is willing to continue propping up struggling banks. The report also criticized the government for “not making its financial effort more accountable and transparent.” The reported failure of the Treasury Department to disclose how financial institutions are using TARP funds creates problems for both the credibility of the program and the government officials administering it. While few could imagine the full amount would ever be needed, the potential for disaster certainly looms large over DC.
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