Congressman Tom Price (R-GA) issued the following statement regarding the report released over the weekend by Neil Barofsky, the Special Inspector General for TARP.

“Mr. Barofsky’s report illustrates that TARP has been, as we predicted, a miserable failure on numerous fronts. Yet this administration continues to use it as a revolving slush fund for the bailout du jour,” said Congressman Price. “It has long been clear that TARP actually increases the likelihood of future bailouts, as this report bears out. As a result, companies are more inclined than ever to cast aside market discipline because they know recklessness will be backstopped by Washington. Until this administration understands a basic economic tenet, moral hazard, risk taking will go unchecked.

“The American people are sick and tired of Wasteful Washington Spending and bailouts with their all-too-obvious unintended consequences. To make matters worse, the so-called financial reform bill passed by the House last year would actually make bailouts a permanent part of the financial landscape. The Democrats’ bill also managed to ignore Fannie Mae and Freddie Mac completely. Mr. Barofsky understands that Fannie and Freddie played leading roles in the housing boom and bust that led us to where we are today. This report shows that continued government interference threatens to re-ignite a destructive housing bubble. Meanwhile, Democrats insist on using these wards of the state to meddle with the housing market.

“TARP wore out its welcome a long time ago. It’s time to finally put this bailout mentality to bed and support common sense financial reforms that promote stable and sustainable economic growth.”

Note: House Republicans have introduced H.R. 3310, a better solution to the fixing the problems in our financial system. A full summary of the legislation can be found here.