Don't bash the bailouts

[Cant trust em]

"The U.S. government... is sitting on a paper profit of almost $11 billion on its 34 per cent shareholding in Citigroup, its only direct stake in a large financial institution."

"The U.S. authorities received more than 7 billion shares in the troubled financial group at $3.25 apiece, after converting $25 billion of preferred stock into common equity at the end of last month."

"Since then, Citi's shares have rallied, and closed on Friday at $4.70, increasing the value of the government's stake by $11 billion."


http://www.salon.com/tech/htww/2009/08/25/do_not_bash_the_bailout/

[Romulox]

1. $11 B = x% of $20 + TRILLION dollars?

:hi:

[mustardman]

2. Please explain those numbers your pulled out of your a$$

The only big question mark is what happens with AIG. The Gov't could come out with a huge gain or break even by covering the losses with the profits. That 11Billion profit is in addition to the 5 or so billion profit they already cashed in from the other banks that withdrew from the program.

[Donnachaidh]

3. and you have links to those reported *profits* the government has accrued?

Until then, this seems like yet another a$$stat.

[Romulox]

4. He's claiming an $11 B "profit" on a $20 trillion "investment". I want to know the ROI

The fact that you object to the question is an answer in itself.

"That 11Billion profit is in addition to the 5 or so billion profit they already cashed in from the other banks that withdrew from the program."

So...what is the overall Return on Investment on our $20 plus TRILLION dollar "investment" in the financial sector? :hi:

[mustardman]

5. Maybe congress should know about this since they only approved 700billion

Any other fairytales you have for us. Where is the proof of that 20trillion? Drudge, redstate, etc. don't count.

As of June before the huge run ups in bank stocks
"Mark Zandi, chief economist of Moody's Economy.com, thinks that the warrants issued against preferred shares of stock from all bailout recipients — not just the 10 authorized Tuesday to repay the government — are worth at least $5 billion. So for a snapshot in this point in time, the Wall Street bailout has been profitable."
http://www.mcclatchydc.com/329/story/69754.html

[Romulox]

6. So you can't answer the question. Bumping this thread only draws attention to that fact.

Have you ever met a poster named "HamdenRice"? You two would get along famously. :rofl:

[EC]

7. We made money on

Goldman Sachs(23%) and Bank of America (20%) too.