2-12-2014: Many small banks are now facing a dilemma – repay their TARP funds now or a reset of their interest rate on TARP funds from 5% to 9% – that could hurt alot of smaller banks and create a failure situation and further shrink small banks in the US. Source: WSJ, 2-5-2014, C2.
Remember all the angst and grief over the “BAILOUT“?
Well, all but $84 Billion of it has been paid back…and with future anticipated profit distributions from Fannie and Freddie due to improved housing market, all of it could be paid back…and then some.
But at what cost and what happened?
Simple – Taxpayers bailed out the banks, investors made bank with volatility in stock market, and the rest of us lost – including having a US President do nothing to create American jobs – Priceless!
But wait…there’s more – American International Group (AIG) was bailed out to the tune of $182 Billion and after the sale of the last share of stock the government owned was sold, the US made about $23 Billion in profit from the sale…where did that money go – to the Federal Reserve to buy MBS’s to create inflation in the long run? Shhhh….shut your mouth!
But wait…there’s even more – What about the GM bailout in which net cost of their bailout was about $20 Billion, but if the US Treasury plays their cards right, the sale of remaining stock could turn a profit on that too…
…And where are the good jobs and careers – we’ve built alot of “would you like fries with that” jobs that are temporary or part time…so don’t get me stared on Obamacare…
Bottom line: President Obama has found an interesting way to finance his socialist agenda – takeover failed companies on the down side, wait for private market to rebound, then sell the failed company stock for profit – sounds like an Austin Powers movie now doesn’t it?
Source: WSJ, 5-10-2013, A4