NEWSFLASH: The Bailout Worked

A new release by the Treasury Department shows that TARP - commonly known as "the bailout" - will not cost taxpayers as much as originally anticipated.  Estimates show that the program, signed into law by President Bush in late 2008 and re-authorized by President Obama in 2009, will cost approximately $50 billion but has the potential to turn a profit for taxpayers.

Although President Obama should have leveraged the use of TARP more over Wall Street banks and hedge funds for stronger financial regulation reform, the program did its job in stabilizing the financial sector at a relatively small cost. (It's important to remember that estimates of the cost of the crisis range from $1.3-1.6 trillion.)

Interesting fact: Although roughly $700 billion was authorized, the program only disbursed roughly $380 billion.

The bailout is a perfect example of why it's sometimes OK to have BIG GOVERNMENT.  I would have liked to stem the financial crisis but unfortunately I don't have $700 billion at my disposal.  The big banks were the ones who didn't have any money anymore, so they couldn't get together and come with a private solution.  Once at the turn of the century, the U.S. went into a recession and J.P. Morgan, not the bank, but the man, bailed out the U.S. government - those were the days!

There are some things that big government shouldn't do. Big government shouldn't set local school curriculum, or set local zoning laws, tell you you can't eat certain foods or smoke, or tell a girl what to do with her body if she gets raped or knocked up by her 15 year old boyfriend.  That stuff is too small for big government to do and it's really not its job.

Anyway, this is a case of big government working.  We don't want big government all the time but we want big government to do big things like this, fighting wars, making sure every state is treating U.S. citizens equally and protecting our food, air and water to make sure its clean.  All of this big stuff we can't do by ourselves and we need big government to do. And when we agree that there are certain big things that we need to do like build more federal highways, reform our outdated healthcare system, update our energy grid, or send our troops to war, it's fair that big government asks us to pay for those things, because those things cost a lot of money.