TARP Turning a Profit

Believe it or not, Hank Paulson’s TARP investment in banks is turning a profit:

New Hampshire Republican Sen. Judd Gregg estimated that the [TARP] program has had a gain of about $8 billion in the past three months. "The TARP, for all its warts, has involved using tax dollars to invest in assets that will have a return to the taxpayer," Sen. Gregg said. "In fact, the estimate to date is that the TARP has actually had a gain of about $8 billion, while recapitalizing the financial system. With this type of stimulus, there will be little, if any, long-term increase in the debt."

Eight billion dollars on the $200 billion Paulson & Co. have injected ino the banking system works out to a 4% return over three months, or 16% annualized, in a market where the typical hedge fund manager was off 18% or more last year. Oh, those Goldman guys. . . .

Comments

[Steven Hansen:]

excuse me if i inquire if that $8 billion is actual money given to treasury or a guess of stock appreciation. you realize a 16% return is larger than even the largest bull$hitter investment manager on wall street is claiming.

Jan 08 04:22 AM

[Allan Frain:]

So we are not allowed to see what was purchased, yet we should accept the report of a "profit" ?

Jan 08 01:04 PM