HOPE THEY’RE RIGHT

October 18, 2010

You can tell by the flurry of my recent postings I’ve been flying a lot recently; that’s when I get to catch up on all of my reading. One item of interest was an article in Investment News titled “TARP bill likely to be fraction of initial forecast.” It seems that due to lower than expected losses on auto and insurance company investments as well as the recent market strength, the White House projects the $700 billion 2008 bailout will cost less than one-tenth of that amount. The really good news is it’s not just the White House blowing PR. Doug Elliott, a fellow at the Brookings Institute said, “The TARP may well be the best and most useful federal program that has ever been despised by the public.” The Congressional Budget Office in August estimated the loss at $66 billion. If you believe it, might be some potentially good news to share with clients.

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