In an eariler blog, Main Street One stated that it would be nice to see criminal investigations into any possibilities of financial fraud or the like with regard to our economic woes of 2008.
As reported by the Associated Press (Jan 31, 2010: Watchdog: Bailouts created more risk in system), special inspector general Neil Barofsky said that "his office is investigating 77 cases of possible criminal and civil fraud, including crimes of tax evasion, insider trading, mortgage lending and payment collection, false statements and public corruption."
That is excellent news. If there are charges to bear it would be to all of our best interests if they were to be soon.
The above was not all that he said, to be sure.
His was a report on the trouble asset relief program (TARP) and, while the White House and others do not fully embrace Barofsky's report, what he does bring to light is quite interesting.
(From AP) "Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," Barofsky wrote.
And the investigation he is leading will, no doubt, play a role in any reform that is implemented to ensure that a meltdown does not occur in the future.
(From AP) "The government has stepped in where the private players have gone away," Barofsky said in an interview. "If we take government resources and replace that market without addressing the serious (underlying) concerns, there really is a risk of" artificially pushing up home prices in the coming years.
Which leaves us exactly where?
According to the AP article, the US Governemnt (read US Taxpayer) is spending $1.25 Trillion to prop up and hold together the housing market.
That is something like $50,000 for every man, woman and child in America.
And, of course, that is also borrowed money, as the Federal Deficit exceeds that staggering amount a few times over.
Time will tell what the Administration will do.
Hopefully, it will be sooner rather than later and will actually be truly meaningful for the future of our Country.
Over For Now.
Main Street One
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