TARP Oversight Panel Overlooks Underpants Gnomes Theory

Today a congressional oversight panel is releasing a report criticizing the Treasury's management of TARP, the Troubled Asset Relief Program (With a Heart of Gold).

Man, I think some people just like to hear themselves complain…

"The panel's initial concerns about the [Troubled Asset Relief Program] have only grown, exacerbated by the shifting explanations of its purposes and the tools used by Treasury," said the draft report, which found that the department has "not yet explained its strategy" for stabilizing the financial markets.

Sure it has. The strategy is a variation on the famous underpants gnomes theory of markets, which states:

1. Give failing banks money
2. ?
3. Financial markets are stabilized.

Clear as day.

Meanwhile, Treasury Assistant Secretary Neel Kashkari, who's in charge of the TARP, explained that Treasury is still busy handing out sacks of money, so everyone should just settle down…

Mr. Kashkari, in a speech in Washington, noted that the Treasury still has roughly $75 billion to distribute to banks as part of its $250 billion capital-injection program. "This capital needs to get into the system before it can have the desired effect," he said.

Like the man says:

1. Capital gets into the system
2. ?
3. Desired effect.

Really, it's so simple, a cartoon child could understand it.