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.
Many groups such as the Consumer Advocacy group, represented by Kristy Sinsara, say that TARP has failed in its objective. “We believe that the lenders have proven that they can NOT be trusted with the Troubled Asset Relief Funds set aside by the Obama Administration,” says Kristy Sinsara.
Kristy Sinsara and the Consumer Advocacy Group have spoken out against TARP, claiming that lenders such as Bank of America have demonstrated an unwillingness to use TARP funding as it was intended. “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,” says Kristy Sinsara. “These lenders have essentially been given a blank check by our government that we as tax payers must pay for.”
The Consumer Advocacy Group’s claims stem from the fact that the many of the financial institutions who have receive Troubled Asset Relief Program funding, such as Bank of America, have not used this money for the stated purpose of keeping lines of credit open and extending relief to troubled homeowners suffering under the weight of sub-prime loans. Instead, claims Kristy Sinsara, these financiers have turned around to snatch up other floundering financial entities such as Countrywide and Meryl Lynch.
An even more startling revelation lies in the fact that many of the heads of these floundering institutions are being provided with “golden parachutes” in the form of high dollar exit bonuses. Kristy Sinsara and the Consumer Advocacy Group are very vocal about their disapproval of the fact that those responsible for the economic crisis are being bailed out, while the true victims, the homeowners, are left to reap the whirlwind.
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.
It is because of this seeming misuse of TARP funding that Kristy Sinsara’s Consumer Advocacy Group and other similar organizations are beginning to speak out. These homeowners advocates are lobbying in Washington in the hope of changing the Troubled Asset Relief Program so that relief is felt by those who truly need it most, the distressed homeowners.
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