Wednesday, October 13, 2010
The “Toxic” Truth About TARP - Rasmussen Reports™
This is about how the government handles OUR money.
Just look at the complications and "guestimates".
Regardless of what the government reports, history should remind you not to believe that taxpayers got any "value"...
Just look at the complications and "guestimates".
Regardless of what the government reports, history should remind you not to believe that taxpayers got any "value"...
Howard Rich writes about it in the Wall Street Journal:
"Of course these rosy, election-year estimates are based on government liquidating its ownership stake in hundreds of 'private' corporations – including a 92 percent stake in the American International Group (AIG) and a 61 percent stake in General Motors (GM).
For taxpayers to recoup their 'investment' in AIG, the government will have to sell 1.66 billion shares of common stock at an average price of $29 per share. At GM, the government must sell 304 million shares of common stock at an average price of nearly $134 per share. Hitting these targets would be a daunting task in any economic climate – and may prove insurmountable in our ongoing malaise.
'How does one get $49 billion out of a company that’s currently worth $25 billion?' an investment research publication recently asked. “'he follow on question is: why would investors buy AIG shares while the government’s AIG stock sale could last 18-24 months?'"
