Magnetic Poles
New Member
The government will cash in to the tune of an $8-Billion profit from selling its stake in Citibank.
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US Reaps $8-Billion from Citi Rescue
- Thread starter Magnetic Poles
- Start date
You need to look at the cost of the progam in it's entirety - not just cherry picked transactions.
"The true cost of rescuing the financial system, however, is not yet known. Senior Treasury officials have said that they expect the ultimate cost of TARP to be less than $100 billion. Besides TARP programs, mortgage financiers Fannie Mae and Freddie Mac have received more than $125 billion in federal aid. There is no indication that either firm will be able to repay the government anytime soon. "
$100,000,000,0000 + $125,000,000,000 = $225,000,000,000
"The true cost of rescuing the financial system, however, is not yet known. Senior Treasury officials have said that they expect the ultimate cost of TARP to be less than $100 billion. Besides TARP programs, mortgage financiers Fannie Mae and Freddie Mac have received more than $125 billion in federal aid. There is no indication that either firm will be able to repay the government anytime soon. "
$100,000,000,0000 + $125,000,000,000 = $225,000,000,000
Robert Snow
New Member
The topic is Citibank, not the entire TARP program. The government made money off Citibank.
I don't know how that could be the confines of the topic while remaining intellectually honest.
Citibank was only a part of the TARP program.
Magnetic Poles
New Member
To you maybe. To me, that is a bag of peanuts I would love to have.Peanuts.
What about the net $225,000,000,000 loss?
Would you love to have that bag of dung too?
canadyjd
Well-Known Member
It is the new liberal math.
Let's see, spend 225 billion dollars of tax payers money... make 8 billion.
That doesn't seem to be a profit, if you use old math. That seems to be a 217 billiion loss.
But, with the new liberal math... its an 8 billion dollar profit for the federal government.
I wonder how long it will take for the dems in congress to spend their "profit"?
peace to you
raying:Magnetic Poles
New Member
Your error is that this is not the only investment in the banks that will become profitable to us. Don't get me wring, I am against bailouts...but this one seems to have paid off. Plus, I'd rather see government invest in the American capitalist economy than in the Chinese economy.It is the new liberal math.
Let's see, spend 225 billion dollars of tax payers money... make 8 billion.
That doesn't seem to be a profit, if you use old math. That seems to be a 217 billiion loss.
But, with the new liberal math... its an 8 billion dollar profit for the federal government.
I wonder how long it will take for the dems in congress to spend their "profit"?
peace to you
Good question.
Answer - the taxpayers.
The banks largely took the bailout and invested in Treasury instruments which paid them interest which is really taxpayer money.
So we - the taxpayers - loaned money to the banks so that they could loan it back to us - the taxpayers - at a higher rate.
And some people this is a really good thing.
Actually, the government didn't "make money". Citibank paid money back to the TARP program, which is now going to be spent in other areas.
How did it pay off? The money is still in the TARP program. It isn't going back to the taxpayers or to pay down our debts.
I'd rather see the government follow the Constitution and stop spending taxpayers' money on so called "investments".