Wanted to pass on this little tidbit – evidence that government expenditures can be managed in such a way to both provide measurable economic benefit, and largely protect the investment of The People.
WASHINGTON – The Treasury Department expects to recover all but $42 billion of the $370 billion it loaned to ailing companies during the financial crisis last year, with the portion loaned to banks showing a slight profit, according to a Treasury report.
The latest assessment of the bailout program, provided by two Treasury officials yesterday ahead of a report to Congress today, is vastly improved from the Obama administration?s estimates last summer of $341 billion in potential losses from the Troubled Asset Relief Program. That estimate anticipated more bank crises.
We’re getting 87% of the original investment back. And we avoided a complete meltdown of the banking system. And, in some cases, actually turned a profit.
The government is projecting a $19 billion profit and perhaps more on the $245 billion loaned to banks, through interest, dividends and the sale of warrants the government received as collateral.
That’s 8% more than we invested. Not a bad return for about 1 year.
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