From Kevin Drum:
CBO estimates the government will make a profit of $7 billion
from the bank bailouts (though it may still lose money on GM and
Chrysler, which were also rescued with TARP funds) and it now looks like
AIG will pay back all its bailout money too.
Bottom line: the ongoing recession caused by Wall Street's reckless
behavior has cost us a bundle. But TARP itself? Its net direct cost is
zero, and when you include the fact that it almost certainly saved the
banking system and softened the recession, it may boast the biggest bang
for the buck of any bill ever passed by Congress.
Yeah.
UPDATE: Success can be measured in various ways.
TARP is a success in that it didn't cost us any money in the end. The banks repaid their debt.
Could it have been more successful? Sure, it could have had more strings in place, so this wouldn't happen again in the future. That is Warren's argument.
If you define success as vengeance, then it wasn't successful. Many of the people who caused this mess still have jobs and gave themselves fat bonuses last year.
If you define success as cleaning up all the ripples of badness caused by Wall Street, then it wasn't successful either. Lots of people are out of work.
TARP was successful in that it kept Wall Street from falling apart. It did. Most definitely. And if Wall Street fell apart, you would have seen much, MUCH worse devastation in this country.
