[danjarch]

Hog, some of the money will come back. Some might even make it back to the treasury, but in the meantime, good banks will collapse or be unable to expand because the bailed out bank will keep the business and be able to get away with riskier loans then the independent banks. So proping up a few big banks will kill good banks and leave us all poorer for it.

Just think of all those over paid CEOs that would already be unemployed if the government hadn't stepped in. We're never going to get that money back. This means rather then more profitable banks and investers paying more taxes in 2010 and 2011, we're going to see less profitable banks and investors stay alive at our expense. So in effect, we've lost more in future tax revenue then the little bit of money we'll get back from the tarp loans.

As well, there is the moral hazard introduced. There is a bigger then ever incentive not to worry about your customers and shareholders, rather you should get closer to your politicions. The 12 million in tarp funds given to a bank in Mass. Donors to Barney Frank, who we're already in trouble for breaking a bunch of leading laws. This is the bad bank that will blow cash on needless things and operate at a loss for the next few years, going back to Barney for another jolt of taxpayer cash if they can. The bank across town will have to match prices for services, will have to compete for employees and will have to offer more to they're shareholders to get more capital. Or they might decide to fold up shop and move on to better shores, seriously, move they're money to another country. Why work your a$$ off for very little return while accross town the conected pull in the big bucks thanks to they're friends.