Even during the worst days of the credit crisis, I have tried to remain optimistic about the state of our economy. Granted, my limited knowledge of the inner workings of the financial system has helped me stay calm in the face of a gathering storm, but I’ve still chosen to keep my eye on the silver lining and have taken great comfort in any news analysis or commentator trumpeting an increase in new jobs, a decline in the unemployment rate, or a decrease in foreclosures.
However, it was pretty hard for me ignore this article from NPR about Neil Barofsky, the independent inspector general of the trouble asset relief program (TARP), and his comments regarding the outlook for our economy. In his quarterly report to Congress this weekend, he argued that the $700 billion bank bailout will actually make things worse in the long run, saying:
“Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car.”
Barofsky also said his office is investigating dozens of potential criminal acts including tax evasion and insider trading.
Eesh. My sunny outlook has just been clouded. Someone pour me a glass half full!
And for more on how the bailouts affect our economy, check out the New York Times Bestseller, The Dollar Meltdown by Charles Goyette
NPR: Watchdog: Bailouts Created More Risk in Our System
