I wrongly predicted that most of the money spent by both the Bush and Obama Administrations bailing out the big banks would not be paid back. This appears to have not turned out as I had predicted. Of the many things I’ve written about, this is one that I’m particularly glad to have been proven wrong about.
The question then becomes, what should be done with the money when it is paid back? (It won’t be paid back all at once, of course.) The answer should be obvious — now that the financial affairs of the pillars of our economy are in some kind of order; this money should be used to get the government’s finances in order.
Let’s use repaid stimulus, bailout, and TARP dollars to reduce the deficit or buy back the national debt. Nothing else.