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.WASHINGTON -- The Obama administration expects to recoup all the bailout money spent on banking and insurance firms, auto companies, mortgage finance companies and struggling homeowners during and after the 2008 financial crisis -- and likely turn a profit.
By 2022, the bailouts are expected to produce a profit for taxpayers – as much as $163 billion in a best-case scenario. That’s a stark turnaround from predictions of hundreds of billions of dollars in losses in the immediate aftermath of the unprecedented interventions.
The predictions were sketched out in new Treasury data released Friday, included in a series of charts highlighting the positive impact of the response to the financial crisis by the Bush and Obama administrations.
But senior officials cautioned that those projections are based on the recovery of the economy and the housing market and would only go so far as to say a profit is likely.
The biggest factor affecting whether the programs turn a profit is the future of Fannie Mae andFreddie Mac, the housing finance giants seized by the government in 2008 on the brink of collapse.
Taxpayers have pumped a total of about $188 billion into the companies to cover losses from bad mortgages owned or backed by the firms. But Fannie and Freddie have paid about $41 billion to the government in dividends.
U.S. could make $15.1 billion profit on AIG bailout, GAO says
WASHINGTON --The U.S. government could end up pocketing $15.1 billion in profit from the bailout of insurance giant American International Group Inc., according to a new estimate by the Government Accountability Office.
The report came as the Treasury Department on Monday continued to wind down its stake in AIG, announcing that it has agreed to sell $5.8 billion worth of shares to reduce the government's ownership stake to 61%, from 70%.
The sale, which would produce about $750 million more than originally estimated, would reduce the Treasury Department’s investment in AIG to about $31 billion, with the Federal Reserve holding another $9 billion.
The remaining government stake in AIG is down significantly from the $125 billion in taxpayer money pumped into the company to keep it from collapsing in 2008.
Treasury Department officials have said they hope to recover all the bailout money given to AIG. And on Monday, the GAO reported that AIG's improved financial health has brightened the outlook on one of the most unpopular bailouts from the financial crisis.
6 comments:
From GAW's comment in the previous thread:
"I hope Mammoth was joking there, as she would be likely to get arrested for arson if she did that"
- - - - - - -
Actually, I was not joking at all about a hopelessly indebted homeowned burning down the house which the .gov & banks will not allow her to sell.
However - I was not advocating she perform this action, either; I was merely pointing out a perfectly viable option for disposing of said house.
And along the same token, my comment here last weekend that - rather than the US impotently pressure china, india, etc. to stop buying oil from iran - the effective solution is to bomb iran's oil fields so that they are incapable of exporting their oil.
Again, I am not advocating a US-iran war; I am merely pointing out what will resolve the problem at hand.
Of course - dealing with both issues will cause other problems; welcome to reality.
Mammoth I don't know how much she would have to pay an arsonist to do so and she probably does move in those crowds even if were morally capable of doing that.
IMO bombing Iran would escalate the price of oil significantly. It would once again be seen by the international community as an act of unprovoked aggression. Not that the US seems to care what is thought of our foreign policy.
Basically the woman is between a rock and a hard place with little options and still dealing with grief in the loss of her husband. Too bad there isn't some sort of hotline that you can call to get information on how to get rid of unwanted property. My action still seems the best. Just walk away or don't pay the mortgage. Everyone knows the banks don't want to foreclose.
I do know that the nonsense in this post, that the US will actually make money on all the bailouts has to be the whopper of all time. Who even keeps track? The GAO? The Senate banking oversight committee? Turbo Timmy?
Gold and Silver taking a beating down along with the market. The only thing that is going up is the US dollar.
I have to admit to some mixed feelings about her situation which reflects a lot of what we are dealing with in our society. Clearly they bought the house to flip (putting it in THEIR name and their SON'S name. The unexpected happened. THEY bought as is...with an undisclosed oil tank. They had no lawyer or realtor involved..which is fine and was their CHOICE. The thing is that this choice backfired on them big time.
I have no problem with people not having insurance but, like my pesky German forefathers, I wonder why I have to bail them out when they make said choice.
As much as the rich, the politicians, and the bankers practice bad behavior, so do those in the masses. I noticed that consumer credit has SOARED. Some of that is people trying to simply live I am sure. BUT I am also sure that some of it is people who will simply continue to spend while drowning. People who expect the 'government' or someone else to bail them out. Eventually, you learn that "God helps those who help themselves" as the saying goes. People tend to forget that most religions agree the poor will be with us always BUT is our job to persevere even so to aid them.
My common sense agrees that those who are widowed, or those with children, or those who are elderly, demand more forbearance and help than the so-called 'able-bodied'....but even the able-bodied can have no COMMON SENSE. And, like most addicts, they keep on with destructive behavior because they neither care nor want to change. It is a sad, unfair reflection that good people have to hit bottom sometimes...and it doesn't make it easy on any of us when we are so low in the well that it seems as if daylight is so far away as to be deemed impossible to see.
They never talk about the stealth bailouts from the housing agencies, or the free bond insurance for the "bank holding companies", or the trillions given to the maggots by the federal reserve.
or the loan modification programs, or the zirp ripoff, or the cost of inflation. or the stimuluses...
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