General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSo, the GM bailout lost $10 billion and the bank bailout made the gov't $26 billion
We still don't know about AIG, but it will probably turn a small profit for the government. This is a large reason why I'm less angry about TARP than a lot of the country seems to be: it stopped the collapse of the financial sector, and made the government enough money that we could also bail out GM with the proceeds. Win-win.
Narraback
(648 posts)ANN ARBOR, Mich., Dec. 9, 2013 A newly-released report by the Center for Automotive Research (CAR), a nonprofit research organization based in Ann Arbor, Michigan, estimates the value to the U.S. economy of the federal governments intervention to prevent the failure of GM and Chrysler in the beginning of 2009.
.....
The industry shutdown scenario results estimate that the shutdown of GM and Chrysler would have reduced U.S. employment by 2.631 million jobs in 2009 and 1.519 million jobs in 2010. The GM shutdown only scenario effect would have reduced U.S. jobs by 1.196 million jobs in 2009 and .675 million jobs in 2010.
If the final net cost of the U.S. Treasurys investment is $11.8 billion in unrecovered funds from General Motors and the reported loss of $1.9 billion at Chrysler this would total $13.7 billion in Treasury funds.
In this case, CARs results show that the U.S. government saved or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections or 768 percent of the net investment.
More at link
Recursion
(56,582 posts)Like I said, win-win.
Old and In the Way
(37,540 posts)Here's what I don't get. Morons want a strong defense...but they want our critical industries to compete with the rest of the world...even though they the world competitors are either subsidized directly or the workers are paid less than a US wage to subsist. Really, morons?
1000words
(7,051 posts)Fuck the American taxpayers that got left holding the bag, what's important is the banks and corporations are safe from danger.
Recursion
(56,582 posts)Banks were forced to sell their shares to the government at a loss, and buy them back at higher price later.
1000words
(7,051 posts)Social programs?
Recursion
(56,582 posts)The rest gets put in the pot.
1000words
(7,051 posts)Pretzel_Warrior
(8,361 posts)Recursion
(56,582 posts)That's an odd kind of heist, no?