TARP bailout to cost less than once anticipated

[TomCADem]

Source: NY Times

WASHINGTON — Even as voters rage and candidates put up ads against government bailouts, the reviled mother of them all — the $700 billion lifeline to banks, insurance and auto companies — will expire after Sunday at a fraction of that cost, and could conceivably earn taxpayers a profit.

A final accounting of the government’s full range of interventions in the economy, including the bailouts of the mortgage finance giants Fannie Mae and Freddie Mac, is years off and will most likely remain controversial and potentially costly.

But the once-unthinkable possibility that the $700 billion Troubled Asset Relief Program could end up costing far less, or even nothing, became more likely on Thursday with the news that the government had negotiated a plan with the American International Group to begin repaying taxpayers.

The rescue of the troubled insurer included $70 billion from the bailout program that was enacted two years ago, at the height of the global financial crisis late in the Bush administration, initially to prop up big banks.


Read more: http://www.msnbc.msn.com/id/39449834/ns/business-the_new_york_times/

[Cant trust em]

1. I think that a lot of time will have to pass before this can pass a political objectivity test. nt

[defendandprotect]

2. The main point is that we are bailing our a failed economic system ... over and again ...!!

These businesses could NOT have borrowed these amounts of money -- and certainly

not at the rates the FED offered on our money!!

Capitalism is over -- and we have to bury it -- or get burned again!!

[pnwmom]

4. Capitalism is over? And the alternative is?

Sorry, but the rest of the world has moved on from Marxism, if that's your alternative.

[girl gone mad]

6. Who's talking about Marxism?

And precisely what part of $23 trillion of the public treasure being funneled to private enterprise in an effort to rescue a small group of private owners from the consequences of their bad decisions is capitalism?

[pnwmom]

13. The person I was responding to said "capitalism is over." nt

[No Elephants]

8. Problem is, we have a plutonomy, not socialism OR capitalism.

[defendandprotect]

23. We do have capitalism ... though it is now unregulated capitalism which is organized crime -- !!

Capitalism is intended to move the wealth and natural resources of every nation

from the many to the few -- and it succeeds at that mightily!

Capitalism is a ridiculous "King-of-the-Hill System" --


Capitalism is the invention of the Vatican when Feudalism became insufficient in

running their Papal States --

[laureloak]

12. The alternative is a mix of capitalism and socialism.

And firm oversite of both.

[pnwmom]

14. Fine with me. n/t

[defendandprotect]

24. That was what FDR/New Deal offered ... we had it -- and right wing overturned it ....

I wouldn't give them any more opportunities to bankrupt our Treasury

or our citizens!

[defendandprotect]

22. World existed a long time without capitalism... how about simply economic democracy...

As Orwell noted re Capitalism and Communism -- "a pox on both their houses" --

[jtuck004]

3. They are only leaving about $7.1 trillion worth of detail out of that story.

The link below is to a current Bailout report. TARP, $700 Billion, is a line item on page 3, but there are a whole host of programs around it to deal with perhaps $140 trillion of leveraged debt that was behind the mostly opaque shields of the 6 largest investment banks, also (now) the Federal Reserve, and investors\banks\funds around the world. And if you transfer the costs out of TARP into one of the others, well, of course TARP gets paid back whole. But there is not mention of the other programs, or the accounting for them.

Report here...

[No Elephants]

7. Please don't try to confuse us.

[jtuck004]

11. LOL - n/t

[defendandprotect]

25. We also bailed out foreign banks in this go round ... and let's recall S&L Theft & Embezzlements ...

we've paid our dues on this street before!!

Everyone forgotten?

Capitalism is corrupt and criminal -- and therefore repeatedly "fails."

[girl gone mad]

5. Care to tell people why that might be?

Could it be the $14+ trillion in backdoor bailouts, the tax forgiveness schemes, the 0% loans from the Fed, unlimited FNM/FMCC bailouts, etc, etc?

Or could it be more legerdemain and mark-to-myth accounting?

Let's put the catapults away and have some honesty for a change.

[No Elephants]

10. "Mark to myth accounting." I love. Therefore, I steal.

The bon mot thief strikes again.

[high density]

29. Whoever made that graphic needs to learn how to read a balance sheet

These numbers seem to be expecting all of the assets purchased/insured/backed by the government under these programs are totally worthless, and that's obviously not the case as we're seeing time and time again.

[TexasObserver]

9. recommend

[independent_voter]

15. when you start with a trillion dollar givaway that does nothing for the middle class

it's not that hard to 'beat expectations'

[defendandprotect]

26. +1000% --

[independent_voter]

16. TARP and H-1b visa proved that some classes always win, and other classes always lose

no matter how well or poorly anyone plays the game in the so-called 'free market'

when someone who isnt supposed to win, wins fair and square, or someone whos supposed to win completely blows it, there's a 'do over' to put things back the way the powers that be meant it to turn out

[defendandprotect]

27. Exactly ... !!

[DCBob]

17. Even it it ends up a profit the ignorant masses will continue to think it was massive giveaway..

The die has been cast by Faux and RW talk show hosts. Sickening.

[independent_voter]

18. BOTH parties supported it, and even in the extreme remote chance it made a profit

it was still a massive risk that a wall street banker would have NEVER taken to bail out an average citizen

to best understand the value of risk, look at your health care prmium in a month you have no claims

[DCBob]

19. Except that virtually every Rethug is now bashing TARP trying to score cheap political points.

and to keep the Teabaggers off their backs.

[independent_voter]

20. i dont form my opinions by who is for or against something

you might try it

[DCBob]

21. I dont either..

[defendandprotect]

28. hmmm....

Except that virtually every Rethug is now bashing TARP trying to score cheap political points.