Government's Response To The Troubled Asset Relief Program

In September 2008, serval financial institutions began to hit the peak of a financial crisis. The American dream, as we knew it, was becoming the American nightmare. The banks responsibility to lend to the public had stopped operating several types of lending activities. College education, home values, retirement funds and life savings were all at risk. The auto industry’s sales began to drop rapidly causing a widespread of job losses. Consumers and business were all beginning to face financial hardship causing the economy to face a severe recession and possibly a second great depression. In October 2008, the United States government responded to the economy struggle by introducing the Troubled Asset Relief Program, commonly known as TARP. …show more content…
The programs were designed to promote American jobs by preventing major companies from failing, investing in banking institutions to restore credit availability for consumers and businesses, and make affordable home mortgages for families. (About TARP, 2015). The public constantly debates over the government’s decision to the global financial challenge. Some felt that the program would not be an appropriate response, and seeing how the economy is today, shows the ineffectiveness of the program. While others feel that the economy has greatly benefited from the government’s actions and would have been worse off if it wasn’t for the creation of TARP. These are the topics I will address that remain controversial to this