Taxpayers earned 23 pct on bailout dollars to GS

[lawgator1]

I'll leave it to the financial guru's on here to interpret this in plain English, if they care to, but my question is whether they think these kinds of returns on bailout monies will be typical, low, or high, or whether it in the end it will result in a net loss. Have to say, if the taxpayers are going to see these kinds of profits (or even half that), it turns the whole thing on its head.

Goldman Sachs Payments to U.S. Give 23% Return to Taxpayers - Bloomberg.com

 

[gsvol]

Meanwhile, Lehman Brothers, Goldman Sachs top competitor, disappears down the Orwelian memory hole, proving two things, monopolies usually are quite profitable and that he who makes the highest political campaign contributions gets first consideration in Washington.

Oh wait, did Bloomberg say we reaped a 23% profit or that we get back 23% of our investment???

 

[lawgator1]

Static to me.

 

[droski]

i imagine it is on the high end, but certainly double digit returns should be expected for all the bailout money except AIG and maybe CIT.

no way it ends up in a net loss btw. as i said at the time the american taxpayer will make billions off of this and of course a) obama will take the credit and b) people will continue to compare this to the stimulus package even though there is zero chance we'll see that stimulus money back.

 

[volinbham]

b) people will continue to compare this to the stimulus package even though there is zero chance we'll see that stimulus money back.

or that we'll see anything approaching this on the GM/Chrysler monies.

The real problem is that Congress will want to respend this money rather than pay back the Treasury.

 

[droski]

The real problem is that Congress will want to respend this money rather than pay back the Treasury.

yup. i posted an article here a couple of weeks ago that said frank already has plans to use the money to support the housing industry.

 

[droski]

or that we'll see anything approaching this on the GM/Chrysler monies..

yes. the argument of "we gave money to the banks why not to the automakers" left out the fact that the banks had a far greater probability of paying the money back. the bank issue was a (hopefully) onetime event of a housing collapse, while the automakers had far greater fundamental problems (which obama didn't solve by handing hte unions gm/chrysler).

 

[lawgator1]

i imagine it is on the high end, but certainly double digit returns should be expected for all the bailout money except AIG and maybe CIT.

no way it ends up in a net loss btw. as i said at the time the american taxpayer will make billions off of this and of course a) obama will take the credit and b) people will continue to compare this to the stimulus package even though there is zero chance we'll see that stimulus money back.

I would probably disagree with some of your rhetorical characterizations, but overall agree with your assesment.

 

[rjd970]

yes. the argument of "we gave money to the banks why not to the automakers" left out the fact that the banks had a far greater probability of paying the money back. the bank issue was a (hopefully) onetime event of a housing collapse, while the automakers had far greater fundamental problems (which obama didn't solve by handing hte unions gm/chrysler).

This.

:yes:

 

[gsvol]

Static to me.

Silly me, I thought clear channel airhead America was bereft of static.

 

[Ohio Vol]

Static to me.

Of course it is; you're not a Lehman Brothers stockholder.

I am though.

 

[T-TownVol]

Of course it is; you're not a Lehman Brothers stockholder.

I am though.

i would advise you to buy GS, the people running the bailout are former GS brass, GS will be "taken care of".

 

[Oldvol75]

All I know is that my pay went UP!! Under his tax cut! With the extra $21.18 a month I can finally afford that 60' yaught I've had my eye on!

 

[BigPapaVol]

i would advise you to buy GS, the people running the bailout are former GS brass, GS will be "taken care of".

GS is a good investment because they are the top of the heap in a business that makes mountains of money.
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[NochNoch]

GS is a good investment because they are the top of the heap in a business that makes mountains of money.
Posted via VolNation Mobile

While I couldn't agree with you more about their position in the industry, it doesn't hurt to be the only ones invited from the private sector to take part in some of those "government only" meetings that were taking place.

 

[droski]

GS is a good investment because they are the top of the heap in a business that makes mountains of money.
Posted via VolNation Mobile

i fully expect gs to blow up one day. might take my lifetime, but those playing and believing the "we are so much smarter than everyone else" card everyday eventually do something real stupid. so far they do look so much smarter than everyone else though.

 

[WA_Vol]

People I listen to think GM is going to blow through all the cash the govt is going to give them and still go bankrupt. GS maybe doing well, but there are a lot of other companies that aren't unfortunately.

 

[droski]

obama's gm plan didn't address the pension and union problem. he just differed it to a later date. what i worry about is the fact that the pensions are now funded by gm stock. if the unions don't sell this stock the pensions will be massively underfunded if gm goes bankrupt and you can bet the unions aren't going ot take the hit.