Despite the fact that Congress never actually approved Geithner's plan to use TARP money to subsidize the PPIP, and despite the reality that the PPIP will do little to actually stimulate the credit markets, (the banks will only ratchet up their lending once the housing market and economy stabilize, not when they are given money; see TARP) Geithner is continuing to move forward with yet another program to help the banking sector.
From the $700 billion of TARP, to hundreds of billions of loan guarantees, to preferential tax treatment, to the relaxation of mark to market accounting, the banks continue to be the focus government bailouts, all the while the housing market, which is actually responsible for the banking crisis, continues to deteriorate as a result of Obama's weak "ownership" housing policies.
Ironically, reports have been published before in the past that banks may actually invest in each other's toxic assets.
The current PPIP program is intended to be funded with $30 billion of tax payer money. However, Geithner has been quoted as saying, "While utilization of legacy asset programs will depend on how actual economic and financial market conditions evolve, the programs are capable of being quickly expanded if these conditions deteriorate". The translation is of course, we will use as much tax payer money as necessary to guarantee up to $1 trillion worth of toxic assets...and there is nothing that Congress or anybody else can do about it.
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