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The US will make a profit from bailing out the nation's banks and carmakers at the height of the financial crisis, the Treasury Department has said.
The bank bailouts may result in a return of $2bn
And the recovering auto industry has added 230,000 jobs as a result.
The US Treasury still owns more than 30% of GM's ordinary shares.
In the end, the Treasury expects to make $22bn from Tarp's bank bailouts and $2bn on Tarp's loans to restart the credit markets, offsetting the auto bailouts.
I've been hearing that since the first Bush bailout in 2008.
Get back to me when the money actually comes in.
we dont always agree, but on this we do. the government might break even IF they hold on to GM stock long enough for it to reach $55 per share, and IF the banks do fully pay back their tarp loans, and IF gm and chrysler pay back their loans as well. since the chances of that happening in my lifetime is rather close to zero, i wont be holding my breath.
I think it is ironic... consider if the US had the money that was owed and used that to invest at 6% interest compounded annually... then get back to me about "making money"...
I've been hearing that since the first Bush bailout in 2008.
Get back to me when the money actually comes in.
The vast majority of it is in already and has been for some time. You know that, right?
Quote:
we dont always agree, but on this we do. the government might break even IF they hold on to GM stock long enough for it to reach $55 per share, and IF the banks do fully pay back their tarp loans, and IF gm and chrysler pay back their loans as well. since the chances of that happening in my lifetime is rather close to zero, i wont be holding my breath.
Of course, that's all ignoring what the cost would have been IF the financial system had collapsed, IF GM and Chrysler had gone bankrupt during the biggest recession in 100 years and IF all of the auto suppliers had gone under as well.
Factor that in sometime. Most of the whiny tea bagger types weren't paying attention in school when people were taught what opportunity cost means.
There's a valid reason why Bush bailed out the banks and why Obama bailed out the auto companies. It's easy to sit around and second guess things while you benefit from the smart decisions of those two men.
The vast majority of it is in already and has been for some time. You know that, right?
Yes, I know that.
Quote:
Of course, that's all ignoring what the cost would have been IF the financial system had collapsed, IF GM and Chrysler had gone bankrupt during the biggest recession in 100 years and IF all of the auto suppliers had gone under as well.
Factor that in sometime. Most of the whiny tea bagger types weren't paying attention in school when people were taught what opportunity cost means.
There's a valid reason why Bush bailed out the banks and why Obama bailed out the auto companies. It's easy to sit around and second guess things while you benefit from the smart decisions of those two men.
That's all true too, but this thread is about direct profits from the loans and I haven't seen those yet.
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