Truth Before Dishonor

I would rather be right than popular

Feds Refuse To Be Paid Back

Posted by John Hitchcock on 2009/04/18


The federal government forced many banks to take TARP money the banks did not want. And there were other banks that willingly took TARP money. But when the government passed legislation adding overbearing strings to the money after passing the money around, many banks decided they didn’t want the money after all. So, the banks decided to pay the money back, with penalties and interest. And the feds said no! The feds didn’t want their money back.

So, I have an idea. If the feds refuse the money with interest and penalties attached, the debt is expunged. If the feds refuse the money, the feds lose out on the chance to ever get the money back. And, since the banks will no longer owe the feds anything, the feds will no longer have the illegitimate right to have government control over the private industry.

I understand I’m talking about the taxpayers losing their money, but the taxpayers are going to lose their money either way. My point is if this were to happen, the federal government will get a major smack-down and will learn a major lesson: There are limits to what it can force on people and there are limits to how it can spend other people’s money. It would hurt in the short-term but it will be much better long-term.

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