Monday, August 31, 2009

1.Bailout 2.... 3.Profit!

I'm serious, though, it actually might have worked!
Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid that many critics thought might never be seen again.

The profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually, according to calculations compiled for The New York Times.
Now, that doesn't include all the banks -- it's unclear how much the other two banks which performed worse will drag us down. And I think that we should've been able to get a better deal that would lead to bigger profits. But overall, I'm proud to have supported a bailout as a good investment back in the dark days of 2008. And once you factor in the effects of a unbailedout collapsed economy on tax revenue, you can see why this was a reasonable way to use the money just from a fiscal perspective. Certainly not the ideal move, but one you vote for if it's yes or no.

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