Dirty socialists extract profits from failing private sector

[JollyRoger]

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.

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.

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.

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

Somehow I think the government is doing it wrong. Where is the Bain-style creative destruction? Why are businesses like AIG and Chrysler still standing? Why are there now yuppies in Detroit?

 

[Ayn Rand]

Quote from the same article

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

$19.2tn wiped out. But at least the government might - might - make $2bn profit in a figure that probably hasn't even been adjusted for inflation.


So it's all good people. The collective farms are working!

 

[Borachio]

How much sense do you think it makes in a time of financial crisis to take money from the bottom poor end of the financial system and redistribute it to the top rich end? Do you think that there is any validity in the view that this happening?

 

[JollyRoger]

If the government had not intervened , a lot more than 19.2tn would have been wiped out by the credit default game playing by the private sector.

 

[Cheezy the Wiz]

Quote from the same article



$19.2tn wiped out. But at least the government might - might - make $2bn profit in a figure that probably hasn't even been adjusted for inflation.


So it's all good people. The collective farms are working!

His point is that the oft-repeated conservative trope of "gubmit giving away our tax dollars to banks and increasing the deficit!" is ridiculous (no news to me, of course), and the fact that the government actually made a profit while doing so only underscores the ridiculousness of their already wrong accusations about deficit magnification via bailouts.

 

[Cutlass]

Quote from the same article



$19.2tn wiped out. But at least the government might - might - make $2bn profit in a figure that probably hasn't even been adjusted for inflation.


So it's all good people. The collective farms are working!

So next time we just have to stop the private sector from wiping out that $19.2trillion.

 

[Borachio]

Is it really necessary to endanger people's well being for the sake of notional currency?

 

[Cutlass]

The economy typically does better in the long run with a reliable currency.

 

[Borachio]

By dirty socialism do you mean "from each according to his abilities, to each according to his needs"?

 

[Old Hippy]

By dirty socialism do you mean "from each according to his abilities, to each according to his needs"?

probably refering to "the great unwashed "

 

[Borachio]

Ragged trousered philanthropist. Do you know it.

 

[Old Hippy]

Ragged trousered philanthropist. Do you know it.

did not know that it was not used before ...but Yeah, love the book

 

[timtofly]

The war was winding down, they had to make themselves look good somehow and new exactly how to go about it. Planned Engineering?

 

[Theige]

$19.2tn wiped out. But at least the government might - might - make $2bn profit in a figure that probably hasn't even been adjusted for inflation.

At one point in time household wealth had declined by about that much but it has since bounced back and re-gained most of that amount.

 

[Core Imposter]

Do you people understand that the real destructive process is only in the early stages? 2008 was only a warning tremor.

 

[Theige]

Do you people understand that the real destructive process is only in the early stages? 2008 was only a warning tremor.

Every credible person on the planet disagrees with you.

 

[Core Imposter]

Every credible person on the planet disagrees with you.

Not really, but I am not going to put anymore thought into my response to you than you did in responding to me.

 

[Borachio]

Please make a brief summary of any relevant information.

Please post a poll.

 

[amadeus]

Even if they did, they still can't calculate the lost opportunities that resulted from bailouts.

 

[Ziggy Stardust]

Do you people understand that the real destructive process is only in the early stages? 2008 was only a warning tremor.

At what time do you expect the real destructive force, larger than the one in 2008, to hit? No explanation needed nor wanted, just a prediction.