The TARP Fund Is Making Us Money
It seems as though our taxpaying dollars being used for the bailout were invested at the right time. The Wall Street Journal reported that “Treasury Secretary Henry Paulson is getting a better return than most fund managers.
Mr. Paulson took a lot of heat for cobbling together much of the strategy for the government’s $700 billion Troubled Asset Relief Program, or TARP, on the fly. Three months later, however, Mr. Paulson and his team are awash in gains.
New Hampshire Republican Sen. Judd Gregg estimated that the bailout program has had a gain of about $8 billion in the past three months. “The TARP, for all its warts, has involved using tax dollars to invest in assets that will have a return to the taxpayer,” Sen. Gregg said. “In fact, the estimate to date is that the TARP has actually had a gain of about $8 billion, while recapitalizing the financial system. With this type of stimulus, there will be little, if any, long-term increase in the debt.”
If TARP keeps going along the same lines, it will put to shame many professional U.S. private-equity funds with decades in the business.”