NoQuarterUSA Obama Bashing

I had an anonymous commenter linking to a post by Larry Doyle. I wrote how TARP was making a profit and major financial institutions were repaying their loans. Doyle wrote a post that dramatically claimed "The TARP Has a $159 Billion Loss !!" Apparently, one exclamation point wasn't enough. Doyle pounded on a single point in the Congressional Budget Office report. The CBO revised their numbers because Sec. Tim Geithner has lowered subsidy rates from 45 percent to 36 percent.. Lowering the interest on loans is always a good sign.

From the CBO Report.

By the CBO's estimates, actions taken through June 17, 2009, have an overall cost for the TARP of $159 billion and a subsidy rate of 36 percent. That rate is lower than the 45 percent recorded in CBO's March baseline, which reflected actions undertaken by the Treasury as of February 27, 2009. The decrease in subsidy costs assigned for existing programs reflects an improvement in market conditions and the earlier-than-expected repurchase of preferred stock, partly offset by higher subsidy costs in new transactions.

The most notable decrease in subsidy rates stems from capital purchases. In CBO's March baseline the estimated subsidy rate for those transactions was 35 percent, a figure that has since fallen to 18 percent. Reductions of similiar magnitude have been recorded for investments made through the TIP and for AIG. Furthermore, the repurchase of preferred stock before the five-year mark lowered the estimated subsidy rates for those transactions because they were outstanding only for a short time. In contrast, the addition of funding for the Administration's foreclosure mitigation plan, a 100 percent subsidy, raises the average subsidy rate for TARP activities.

Contrary to Doyle's claims, THE CBO report states $159 billion is the cost of TARP. The lowering of subsidy rates is good news. Loss and cost are two entirely different things. Doyle worked Bear Stearns as a mortgage trader and was the National Sales Manager for Securitized Products at JP Morgan. Doyle is a hard right conservative with a lack of economic understanding. Doyle is best known for blogging at NoQuarterUSA. The top blog post, on Google, is Larry Johnson's "Michelle Obama and Louis Farrakhan Take On Whitey."

I learned over the weekend why the Republicans who have seen the tape of Michelle Obama ranting about “whitey” describe it as “STUNNING.” I have not seen it but I have heard from five separate sources who have spoken directly with people who have seen the tape. It features Michelle Obama and Louis Farrakhan. They are sitting on a panel at Jeremiah Wright’s Church when Michelle makes her intemperate remarks. Whoops!! When that image comes out it will enter the politcal ads hall of fame. It will be right up there with the little girl plucking daisy petals in the famous 1964 ad LBJ used against Barry Goldwater.

Johnson did a great deal of flip flopping and the tape of Mrs. Obama and Farrakhan never materialized. Johnson also wrote a piece how America is more likely to face a nuclear than terrorist attack. You won't be surprised to learn Johnson once worked in the CIA.

How much credibility do you want to give Larry Doyle's misinformed piece? NoQuarterUSA is a stomping ground for Obama bashing and birther conspirary theories.