Could taxpayers benefit from the bailout?
September 30, 2008 by Personal Liberty News Desk
The government’s $700 billion bailout of troubled financial institutions may actually end up benefiting taxpayers in the long run, analysis by Barron’s has claimed.
According to the business newspaper’s Monday edition, the Treasury Department is likely to actually turn a profit as a result of the bailout in the coming years, which – if it comes to pass – would also be good news for taxpayers.
The article suggests that the mortgages and mortgage securities involved in the deal "aren’t as toxic or widespread as commonly assumed."
By purchasing these mortgages, the Treasury will provide a boost to credit markets and improve the prices of securities supported by home loans, Barron’s says. This could help prevent further decline in the real estate market.
Commenting on the potential effects of the government’s actions, Jeffrey Gundlach, chief investment officer of TCW, told the news source that "there’s a good chance that the bailout plan will be a win-win for both the taxpayer and the financial system."
However, not everyone is convinced that government intervention is a good idea. Reuters reported that one venture capitalist, Bill Perkins, bought a full-page advertisement in the New York Times last Tuesday to protest the action.
He told the news provider that the U.S. has become "a socialist-communist country in the form of trickle-down communism."
Considering the bailout has already failed in it’s purpose, I don’t think so. The Treasury gave 7.2 billion to PNC bank (which is perfectly stable) to buy out a troubled bank National City of Cleveland that was beginning to recover, but which had been denied recovery money. The Treasury official who made the decision is a former employee of PNC.
That buyout is going to further depress one of the poorest cities in America: one that has gotten the shaft as far as Federal monies are concerned. In fact, the only time a Federal official pays attention to Cleveland is when it’s election time. They fly in for a photo op (and never EVER pay the costs of security) , get elected and vanish for 4 0r 6 years. The only elected official paying attention is Dennis Kucinich. Oh, wait: Steve LaTourette, (who desperately is trying to keep his seat) is attempting to get an inquiry into the National City debacle.
Too little, too late as usual for Cleveland
to date, 12 banks that are ‘more stable’ have been granted funds, along with over 20 businessess that aren’t in any trouble at all in order to fund acquistions. Smaller companies are NOT seeing the bail out money promised, there is yet to be a rule that forbids bailout money to be used for golden parachutes, and five major institutions (Morgan Stanley, etc)are paying annual bonuses ranging from 250,000.00 per employee to 110,000.00 The chief execs, of course, are getting millions.
So much for helping the American people.
My husband and I were blogging on ABC News yesterday about Obama and all our posts have been deleted. What happened to freedom of speech. They were not mean and we did not use filthy language in the blogs we just stated some facts!!!