"new spending...Paulson's bailout"

One of these days a huge lightbulb is going to light up in the heads of the people that characterize TARP as spending will realize that Tarp money was not spent but loaned out to be paid back with interest. It was written into the legislation

Understanding TARP

For instance Wells Fargo got $25 Billion and paid it back plus $1.4 billion interest.

JP Morgan got $25 Billion and paid it back plus $1.7 billion interest.

Not all of it has been paid back yet but every time some of it is paid back the Obama administration hoots about how They have heroically gotten the money back for the American people when in actuality it has to be repaid by law.

In the legislation says the the TARP money loaned plus the interest must go into back into the treasury.

Does it go there? Or does it go into actual real spending, money that will never be returned to the treasury, on programs like cash for clunkers?

Why would it not be returned to the treasury? Because that way it goes on President Bush's tab as deficit spending by the Bush administration.