1) America's most powerful, too-big-to-fail banks are turning in their TARP money.
2) They are repaying TARP funds to escape:
a) Legal limits on bonuses for their top 25 employees.
b) Rules prohibiting golden parachute payments for executives when they leave.
3) Stress test were flawed and banks still need this money.
4) Banks are returning TARP funds equal to less than a tenth of the taxpayer assistance they have received.
Bank executives deserve huge bonuses for the skill with which they have fleeced taxpayers.
Kollapsnik at ClubOrlov helps us laugh at the institutions that drive our country.
I think TARP should be on the list of major boondoggles.
Humor helps mask the pain of the effects of these boondoggles.
Economic collapse has a way of turning economic negatives into positives. It is not necessary for the United States to embrace the tenets of command economy and central planning to match the Soviet lackluster performance in this area. We have our own methods that are working almost as well. I call them “boondoggles.” They are solutions to problems that result in more severe problems than those they attempt to solve.
Just look around and you will see boondoggles sprouting up everywhere, in every field of endeavor: we have military boondoggles like Iraq, financial boondoggles like the doomed retirement system, medical boondoggles like private health insurance and legal boondoggles like the intellectual property system. At some point, creating another boondoggle becomes the preferred course of action: since the outcome can be predicted with complete accuracy, there is little risk. Proposing a solution that might work runs the risk of it not working.
So why not, as a matter of policy, only propose solutions that are guaranteed to simply create more problems, for which further solutions can then be proposed? At some point, a boondoggle event horizon is reached, like the light event horizon that exists at the surface of a black hole. Beyond that horizon, the only possible course of action is to create more boondoggles.
The combined weight of all these boondoggles is slowly but surely pushing us all down. If it pushes us down far enough, then economic collapse, when it arrives, will be like falling out of a ground-floor window. We just have to help this process along, or at least not interfere with it. So if somebody comes to you and says, “I want to make a boondoggle that runs on hydrogen” — by all means encourage him! It’s not as good as a boondoggle that burns money directly, but it’s a step in the right direction.