USA to break even on bailouts

[wiifan75]

Rath said:

http://www.bbc.co.uk/news/business-17720012

 

 

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 (£1.3bn), the Treasury said in its latest projections for the government's response to the crisis.

And the recovering auto industry has added 230,000 jobs as a result.

The recession was the worst since the Great Depression and $19.2tn of wealth was wiped out, it said.

"Although the economy is getting stronger, we have a long way to go to fully repair the damage the crisis has left behind," the Treasury said.

"We are still living with the broader economic cost of the crisis, which can be seen in high unemployment."

The vast majority of the projected returns - more than $179bn - come from the Federal Reserve's huge investments and loans to banks.

The Fed and the Treasury together invested $182bn just to save insurance giant AIG.

Tarp

In terms of the bank bailouts, the much-maligned Troubled Asset Relief Program (Tarp) that provided money to more than 700 banks has already realised a $19bn profit.

The bailout of carmakers General Motors and and Chrysler - which was also part of Tarp, cost $22bn, the Treasury said.

"But the cost of a disorderly liquidation to families and businesses across the country that rely on the auto industry would have been far higher," it added.

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.

 

 

 

So it stopped the collapse of their banking/car industry and ended up not costing the government money.

This was bullshit by the government to self support itself with the reserve contiueing the ridiculous banking regulations that will continue.  Also they saved the auto manufacturers because big oil is such a generous campaign sponsor.  If the auto makers would have suffered their own consequences, electric cars and small electric car manufacturers would have prospered greatly in the results of the auto industry heavyweights being out of the picture.  The bail outs were for nothing but self preservation of the government and politicians in their regular daily lives and business.  They bailed out their own futures from collapse.

The American people were deprived of a brighter future with electric cars having a bigger presence and banking conglomerates going away to make room for the smaller banking institutions to develop like always in their support of small and minority business owners.