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“White House Aims To Cut Deficit With TARP Cash”….And Other 4th Grade Math That Would Get A Failing Grade

The WSJ - and everyone else - is reporting this morning that the Obama administration is considering taking unused TARP funds and applying them to the federal deficit.  Everyone who suggested or went along with this should be publicly marked with the scarlet letters ”FF” for Fiscal Failure, which would allow us to know very quickly who can and who cannot get involved with fiscal policy.  The TARP funds were authorized by Congress, but were created by borrowing, which of course is part of the national debt.  To suggest that you will borrow more through one program in order to pay down borrowing through another program is nonsense.  It is nothing more than a political show to make observers think that we are doing something constructive, when in fact we are not.  The logical and boringapproach is, if you don’t need all the TARP money, don’t borrow it in the first place.