Former TARP Inspector General: ” US Pretty Fucked”

Neil Barofsky, the former Inspector General of the Troubled Asset Relief Fund, summed up the state of the countries finances in two words: “Pretty fucked.”

The response was to the question “So we’re just totally fucked, right? As citizens, like no-way-out fucked?” asked during a question and answer session on Gawker.

“We need to convince those seeking or trying to retain power that they will not get our votes unless and until they commit to meaningful change of a financial system,” Barofsky wrote in the Q&A.

Barofsky’s assessment is strikingly similar  to Christina Romer’s. Romer, the former chair of President Obama’s Council of Economic Advisers, told Bill Maher last year that the U.S. was “pretty darned fucked” on the night that the US credit rating was downgraded by Standard and Poor’s.

In addition, Barofsky insisted that President Obama’s administration isn’t doing enough to address issues inside the financial industry, saying that Dodd-Frank financial reform doesn’t adequately address questions surrounding too-big-to-fail banks:

“The incentives are all still in place for the TBTF banks to accumulate dangerous amounts of risk in the quest for short-term profits with the assurance that if their bets do not pay off, they (and most importantly from the perspective of market discipline) and their counterparties/creditors) [sic] will be bailed out by the gov’t. Combine that with a lack of accountability for bad/fraudulent behavior, and you have a toxic cocktail that will bring about another crisis. Regulatory reform did nothing to change those incentives. “

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