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U.S. Treasury: hand-outs might produce profits...
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TOPIC: U.S. Treasury: hand-outs might produce profits...
U.S. Treasury: hand-outs might produce profits... 2 Years, 7 Months ago Karma: 266
Tne propaganda machine just trotted out some of its MOST absurd fiction - something we haven't been forced to listen to for close to two years: that the endless $TRILLIONS in hand-outs which the Treasury Department has orchestrated for the Oligarchs would "produce a profit for taxpayers".

First of all, the reason why we haven't been forced to listen to this B.S. for such a long time is because it probably took that long for the LAUGHTER to die down - from when they were peddling this lie previously.

Note that any/all hand-outs for Fat Cats fall totally under the heading of "trickle-down economics":

You give a Fat Cat a DOLLAR so that a few PENNIES slips through his greedy fingers and "trickles down" to the masses.

This phony dogam is TOTALLY contradicted by all economic theory. As a result, there has NEVER been a successful example of this policy in all of history - despite the fact that it is the ONLY policy of all right-wing politicians (and has been for HUNDREDS of years).

This hearkens back to the definition of insanity: doing the same thing again and again (and again and again...) - but expecting a DIFFERENT RESULT...

"Crisis Programs May Earn Long-Term Profit, U.S. Treasury Says"

The U.S. Treasury Department, defending the Obama administration’s efforts to fight the financial crisis, said programs intended to right the economy and bail out companies such as General Motors Co. (GM) may earn a profit for taxpayers in the long term.

That assessment includes bailouts of banks and automakers under the Troubled Asset Relief Program as well as Federal Reserve crisis measures, such as large-scale asset purchases, according to Treasury officials who briefed reporters in Washington yesterday on condition of anonymity. It excludes the $825 billion stimulus package passed in 2009.

The officials said they wanted to combat public perceptions that the programs were too expensive or had failed, and they cited estimates published in news media in 2008 and 2009 that the bailouts would cost into the trillions of dollars. The programs ended up working better and losing less money than anyone could have projected, one of the officials said.

“They have a good story to tell [LOL - don't they ALWAYS?], but it’s a strange mix of things they’re counting,” said Phillip Swagel, former assistant Treasury secretary for economic policy in the George W. Bush administration and now a professor at the University of Maryland in College Park. He said he questioned whether profits from the Fed programs should be taken into account alongside funds to bail out car companies.
Congress Republicans

Republicans in Congress have criticized the bailouts, which began under Bush in 2008 and continued under President Barack Obama starting in 2009. Republican presidential candidate Mitt Romney supported aid for banks while opposing help for automakers.

The Treasury presentation came the same day Fed Chairman Ben S. Bernanke gave a speech in New York defending the central bank’s response to the crisis. The Fed’s actions as financial firms were failing “reflected the best of bad options,” Bernanke said yesterday.

The chairman of American International Group Inc. (AIG), the insurer rescued by a 2008 U.S. bailout, said yesterday that the government may exit its stake in the company by next year.

“It will be Treasury’s choice as to when they want to liquidate” their shares, AIG Chairman Steve Miller said in a Bloomberg Television interview. “But it is certainly within the realm of possibility that it could happen within the next 12 months.”

AIG Chief Executive Officer Robert Benmosche, 67, has repurchased shares from the government to help the company regain independence from its rescue and improve return on equity. New York-based AIG bought back $3 billion of stock from the Treasury last month at $29 a share as the department sold the same amount at that price in an offering to investors, cutting the U.S. stake to about 70 percent.
Subject to Change

The Treasury’s projections on the costs of the financial rescue are subject to changes in the economy and financial markets, and extend as much as a decade into the future. Investments in mortgage-finance companies Fannie Mae (FNMA) and Freddie Mac have a current net cost of $151 billion that the Office of Management and Budget projects will fall to $28 billion by fiscal year 2022.

The TARP, used to bail out financial firms, including Citigroup Inc. and Bank of America Corp., as well as automakers, is projected to lose about $60 billion, the officials said.

The auto industry has added more than 230,000 jobs since the bailouts, according to the Treasury. The potential cost to families and businesses that rely on the sector would have been far greater than the $22 billion that the Treasury estimates it will lose on that auto portion of the crisis-rescue plan.

Making up for some of the losses are gains from the Fed programs, including emergency liquidity plans and asset purchases. Earnings from those efforts are projected to reach $179 billion through fiscal 2015.

The Fed bought $2.3 trillion of bonds from December 2008 to last June in an effort to reduce long-term borrowing costs and spur the economy. The Fed returns interest income from those holdings to the Treasury after covering its expenses.

The officials also showed statistics illustrating financial difficulties for families, including a decline in real median household income to $49,445 in 2010 from $53,252 in 1999.
Jeff Nielson
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Re: U.S. Treasury: hand-outs might produce profits... 2 Years, 7 Months ago Karma: 266
Note how Bloomberg and the Republicans are seeking to re-write history here:

"Republicans in Congress have criticized the bailouts, which began under Bush in 2008 and continued under President Barack Obama starting in 2009. Republican presidential candidate Mitt Romney supported aid for banks while opposing help for automakers."

In fact, ALL of these bail-outs were initiated by Bush's REPUBLICAN regime, and MOST of the $15+ TRILLION in blank-cheques had already been handed out BEFORE Obama's first day in office.

However, in the Land of Propaganda, where you want to create the mythology that Democrats are "reckless spenders" while Republicans are "fiscal conservatives" (LOL!!!), then you simply rewrite history.

Back in the REAL world, it is RIGHT-WING politicians who have consistently produced the largest deficits, because the ratio of what they SPEND versus what they TAX is always far higher than with the (supposedly) fiscally challenged "left wing".

Note of course there IS no "left wing" in U.S. politics. There is only a Right Wing, and an EXTREME Right Wing.

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