Reply #23: I'm surprised you didn't give some documentation, links. [View All]

[JohnWxy]

this money went into loans and purchase of convertible preferred stocks. Unless these lending institutions and corporations go bust and we have to take what liquidation of assets yields, the debt will be repaid ....with interest.... and the stocks will be sold.

This does not mean that entire amount will be lost....Right?

These are expenditures but not expenses. You generally don't call an investment of funds an expense. When you puchase a bond you don't consider it an expense but an investment which will yield a stream of payments in the future. This stream of future payments has a value which must be recognized if you are to keep your books straight.


NOw there are expenses involved in operating the TARP. They are quite considerable but not into the Trillions of dollars.