So what about that Bank Bailout? November 2, 2010Posted by shaferfinancial in Finance.
Tags: Bank Bailout Costs
I am on the record being in favor of the bank bailout, but not in favor of the bailout of AIG and GM.
But saw this from the government yesterday. The AIG bailout is expected to make money for the government when it exits the company [something that might take a while]. Combine this with a small profit the government will make from the banks and we now see losses coming from GM and Chrysler and their finance arms of around $17 Billion. And around $45Billion for the mortgage modification program. Total losses are headed to around $29 Billion with most of that for mortgage modification which benefits home owners as well as banks.
Hardly, earth shattering expenses, especially when compared to the $1.7 Trillion dollars spent on the wars in Iraq and Afghanistan!
Now I am sure there are some that will argue with the government accounting calling the government liars and much worse, but the point is that the bailouts stabilized the economy at a critical point and have not cost us anywhere near as much as was touted by critics. And whether you supported this action or not we should be thankful for that.
Just thought I would add that I went to vote here in northern New Hampshire and for the first time ever, I had to pencil in my X next to a candidate! No arguments about electronic data ballots, just old fashioned pencil to mimeographed paper……