Friday, September 17, 2010

The People At Treasury Can't Be Trusted

Via dday we have this:

As for President Obama's mortgage modification program, the CBO estimates that the Treasury Department will use no more than $20 billion of TARP funds, less than half of the $50 billion originally allocated. That's because the CBO expects many fewer people will participate in the program than the government originally expected, a view held by many housing industry observers.

A month ago:

There was talk about how fiscal policy can’t move through Congress. I asked them about only 0.5% of HAMP being spent and how that could be used without Congress’ permission. Before I suggested that the remainder of the $50bn be divided into two funds, the Digging Holes Across States (DHAS) fund and the Filling Holes Across States (FHAS) fund, two far more socially productive means of spending the HAMP money than what is currently being done with it, I was told that the entire $50bn is expected to be spent by the time the program is over. I didn’t believe it; we will see.

I didn't believe it either, but they said it. The HAMP money promise was used to gain support in Congress for the release of TARP part deux funds. HAMP became a Treasury blessed predatory lending programing which screwed good faith homeowners attempting to participate in it.

The truth is if they spend $5 billion on it I'll be shocked.

...check post update here.