Obama... Man Were We All Fooled...

[steven787]

Rath said:

steven787 said:
The "bailout" is probably the best thing the government could have done for the economy other than something more directly affecting the homeowners.

Government didn't just give money, it bought bad debt. If there is one thing the gov't is good at it's collecting money. As interest is being paid off on these loans, they will make a profit.

To manage the accounts the U.S. treasury department is going to hire private firms.

They bought toxic debt, currently it is essentially worthless and they quite possibly will never get their money back.

I agreed with the bailout of Fannie Mae and Freddie Mac as those two going under would have destroyed everything financial, however I'm not sold on the rescue of AIG and this $700B bailout.

It all depends on how they go about collecting it.  But you are right, I was painting it rosier than it is in reality for the sake of argument.