Much to the chagrin of many, Bloomberg BusinessWeek has done an accounting of the government response to the financial meltdown of 2008.
The bottom line - up here at the top of the page, a net profit of $24 billion when it's all over.
Here is the link:
http://images.businessweek.com/mz/11/16/1116_mz_27bailoutacct.pdf?chan=magazine+channel_11_16+-+how+to+pay+no+taxes_news+-+politics+%2B+policy
But if I may, the top line down here at the bottom:
TARP: $780 billion was committed, and 28 billion will be lost. That breaks into three major categories:
Banks, where the treasury injected $245 billion. Already paid bad: $251 billion. Citigroup will pay back $12 billion, and Goldman Sachs $1.4 billion, with another $6.3 billion to come from various warrant sales, dividends and other repayments.
FEDERAL RESERVE PROGRAMS: The Fed committed $1.7 trillion, According to Treasury, the programs will generate $110 billion in profits, including zeroing out Fannie Mae and Freddie Mac debt, dollar swaps, and the AIG bailout.
MORTGAGE BACKED SECURITY PURCHASES: Treasury boun $225 billion in securities in 2008 and 2009, and expects to sell them at a $13.5 billion profit.
MONEY MARKET MUTUAL FUNDS: Treasury committed $50 billion to insure money market programs from "breaking the buck", but never had to pay anything out. Premiums received: $1.2 billion, all profit.
FANNIE MAE AND FREDDIE MAC: So far $154 billion has been committed, and is showing a $73 billion loss.
FDIC: Now running a surplus, with $10 billion in premiums versus $2.4 billion in claims so far.
According to Treasury's latest projections, they anticipate a profit of around $24 billion when it all nets out.
If you have complaints, write to Bloomberg, not me.
In other news:
Total Rail volumes - excluding grain and coal shipments - rose 7.9% in the first quarter, according to the Association of American Railroads. It was the second highest increase in a first quarter, following last year's 9.3% rise. "This is almost double the first-quarter growth rates of the last economic recession, during the 2003 - 2006 recovery period."
http://www.bloomberg.com/news/2011-04-12/rising-railroad-shipments-reflect-increasing-momentum-in-u-s-expansion.html
- -
| 