By Ian Swanson - 11/18/09 12:36 PM EST
that the return of unused or returned TARP funds represents a budget
deficit involves a heavy dose of smoke and mirrors, according to the
chairman of the Senate Budget Committee.
“It’s the ultimate
in spin exercise,” Sen. Judd Gregg (R-N.H.) said of the
administration’s floated plan to put toward the deficit $210 billion in
funds never used or paid back by banks.
As for the funds not spent, “you don’t get debt reduction if the money is not spent,” Gregg said.
He also said the $700 billion TARP was sold on the idea that all of the funds would not be needed. The idea was to create a large fund to create confidence the U.S. would back up the financial system.