Phase to Ground Taking the path of least resistance since 2008

Comic: TRAP

Okay…Let’s start with a definition:

TARP (or T.A.R.P.) – Troubled Assets Relief Program – This is the U.S. government’s program to purchase equity and and assets from financial institutions in order to keep these banks from failing due to the bad invenstments that have been made over the years for various reasons.

Basically, the U.S. government had to step in when these companies proved that they were being improperly managed and/or affected by various financial market downturns.  In order to stimulate the economy, the government gave billions of dollars to the banks in the hope that they would offer loans to people so that they could buy houses and jump-start that sector of the economy. However, they didn’t get that in writing, so the banks just horded the money they were given and then asked for more money to actually loan out to people.

So what’s my point? Basically, the financial companies are using TARP as a substitute for good business practices and are going to hide under there for a while, or until they actually do fail.

This may not all be accurate, but I don’t really need it to be to be funny. If I got something wrong, please let me know.