The seemingly abrupt “change in plans” regarding focus of the remaining Treasury Asset Recovery Program (TARP) money from buying up toxic mortgage debt to potentially buying up consumer loan asset backed securities might be telling us something. The Fed/Treasury/Administration (FTA) may have had a moment of sudden intuitive understanding in regard to the theoretical multiplier effect (remember that one from Basic Economics) as per use of TARP funds.
Your assignment is to ponder the reason why. This is due next week.
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