TARP- Totally Awful Recovery Program

Good TARP and Bad TARP

Neil Barofsky the US TARP Inspector General has resigned and stated the problem with “too-big-to-fail institutions” has not been resolved.

So my advice is to keep your retirement money very close to you. If we get a second financial crisis there is a good chance we will have to finally take the medicine for allowing our governments to become so fiscally and monetarily irresponsible.

There is no more money in the cupboard, only printing presses manufacturing paper money as fast as they can. Let’s hope they finally get it and stop!

Bad TARP – Totally Awful – No Consequences

Basically he is saying we are all still on the hook for the next round of banking nuts driving world economies to the brink of financial failure. Next time they may succeed because all their old toxic assets have been purchased by central banks and quarantined for future possible sale.

You might want to fall about laughing at that last statement. Go ahead, be my guest. Nyah-Nyah But it just highlights the distorted view of the world held by Central Bankers. They believe they can hold back the next financial tsunami too.

Take a look at this video of an interview with Mr Barofsky entitled, “ Tarp Inspector General: Response was :Hopelessly Naive”.

Good Tarp – With Consequences

There is one Central Banker who’s TARP had some bite to it though. This is an object lesson for the USA and the European Union to follow in the name of the taxpayers.

There is only one banker I have come across who got it right and is now prosecuting 164 senior and top level bankers according to his interview on Hardtalk the other day. His name is Lamido Sanusi and he is the Nigerian Central Bank Governor. Watch the HardTalk interview with Lamido Sanusi and learn how a central banker should act after the financial crash.

Yes, that’s the country the USA and others threatened with all sorts of embargos if they did not stop the Nigerian Scam letters that fool many greedy people looking for something for nothing.

He says he supports free markets and open government. He is very outspoken about politics in his own country despite being appointed the Central Bank Governor.

The main point I want to mention though is his stand against the Private Banks in Nigeria after the financial crash. He financed the banks to avoid them failing, but then took the unprecedented step of sacking all the CEOs of the banks responsible for the massive speculation that went on in Nigeria as in the rest of the world. He also made all those people who got “dodgy loans” from these banks, pay the money back.

Read more on this at, “ CNB Sacks Five Bank CEPs, Injects N400b

“The Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc.”

TARP with Justice as it should have been done

He has also made the bankers pay back much of the money they paid themselves. The first to be jailed is a member of the Nigerian’s elite families, Nigerian banker jailed in blow for elite.

“The ousted chief executive of a Nigerian bank has been sentenced to 18 months in prison for fraud and ordered to hand over $1.2bn in cash and assets, as prosecutors struck a blow against a wealthy elite long considered untouchable.”

Sanusi not part of the Banker’s Club

It was Mr Sanusi who also exposed the corruption scandal with the Australian Reserve Bank’s overseeing of a company called Securency.

“Central Bank of Nigeria governor Sanusi Lamido Sanusi described as ”disturbing” the revelation that more than $10 million in commissions were wired to accounts – including some in secretive tax havens – by the RBA’s bank-note firm Securency”.

A few more bankers like Mr Sanusi and maybe our retirement nest eggs will be protected.

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