CBO Cost Estimate: TARP Costs Now Projected at $25 Billion, Far Below Frequently Cited $700 Billion.

In a prior post in early October HERE I reported that Treasury was projecting that TARP costs would be $51 billion, far less than the $700 billion frequently cited. (Housing costs were projected at $46 billion of that $51 billion).

The CBO has issued a NEW cost projection HERE saying that TARP will actually end up costing only $25 billion, with $12  billion of that for housing programs.

CBO says that their $12 billion in estimated TARP housing costs are significantly below the $46 billion projected by Treasury because: 

The difference between those two estimates stems primarily from disparate outlooks on the number of eligible households and the participation rate among those households.

Originally created and posted on the Oregon Housing Blog.