The collapse of the sub-prime lending market sent shockwaves throughout the U.S. economy and, ultimately, the global economy, as well. As the U.S. government scrambled to find a solution, the Troubled Asset Relief Program (TARP) was established to provide a cushion for lenders, in an attempt to keep lines of credit open and prevent the economy from bottoming out. “The point of TARP”, says Consumer Advocacy Group President, Kristy Sinsara, “was to ‘stimulate the economy’ by giving money to ‘big businesses’.” However, there may be cause to doubt the effectiveness of this course of action.
However, groups like the Consumer Advocacy Group claim that TARP has been anything but successful in achieving its aim. “We believe,” says Kristy Sinsara, “that the lenders have proven that they can NOT be trusted with the Troubled Asset Relief Funds set aside by the Obama Administration.”
The Consumer Advocacy Group has actively voiced its disapproval of TARP, both publicly and on Capitol Hill. Kristy Sinsara believes that lenders such as Bank of America have not used the funds provided by TARP for their original purposes, nor has the government enforced the guideline it established for TARP recepients. “The lenders (Bank of America especially) have proven that they will only use the money for their own personal gain and have absolutely no individual homeowners’ needs in mind. These lenders have essentially been given a blank check by our government that we as tax payers must pay for,” states Kristy Sinsara.
If this funding has not been used to the benefit of suffering homeowners, how has it been used? Kirsty Sinsara and the Consumer Advocacy Group claim that TARP funds have been used to retain stability within the financial community at the expense of homeowners and taxpayers. These financial entities, says Kristy Sinsara, are using TARP funding to bail out or buy up crumbling financiers such as Meryl Lynch and Countrywide, rather than to benefit individual homeowners.
To sharpen the blow further, many of the executives of these failed institutions are receiving sizable bonuses or severance packages. These are the much discussed “golden parachutes” being handed out to the very individuals who’s poor decision making created this global economic crisis in the first place. It is this gross misuse of taxpayer money that has caused concerned groups like Kristy Sinsara and the Consumer Advocacy Group to stand up and voice their disproval.
Not only are these flagging financiers being bailed out, but many of the executives of these collapsed institutions are being provided with substantial exiting packages. These much discussed “golden parachutes” are being provided at taxpayer expense via TARP funds, says Kristy Sinsara. Meanwhile, organizations like the Consumer Advocacy Group are left scrambling to try to help faltering homeowners as best they can.
Groups such as Kristy Sinsara’s Consumer Advocacy Group have done much to raise public awareness of the issues surrounding the Troubled Asset Relief Program. They are also openly lobbying in Washington, pleading for change and relief on behalf of homeowners. As more and more homeowners find themselves teetering on the brink of foreclosure, Kristy Sinsara and others may find that the toughest battles are still ahead.
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