Unless your oblivious to everything happening in America right now, you’ve been told how Obama saved America from complete fiscal devastation. Problem is, what Obama “saved” is costing each and every one of us so damn much money it’s painful to think about.
Quick, how many billions in the red are taxpayers on the bailout of GM? AIG? Fannie and Freddie? Is it true that the government has reaped a profit from bailing out the banks?
It should be easy to find answers to such questions. But while it’s a snap to find rosy administration claims about the bailout, finding hard numbers is much more difficult.
That’s why, since the bailouts began in 2008, we’ve maintained a frequently updated site to provide them. Now we’ve retooled our database to make it even easier to find these sorts of answers.
So you can effortlessly discover that it’s $27 billion for GM, $23 billion for AIG, $91 billion for Fannie, $51 billion for Freddie, and yes, the bank investments have so far returned a profit of $19 billion.
Now, I’m not saying the feds shouldn’t ever put taxpayer money into a company that is struggling. But I will say that putting money into a company that would be better off going through a structured bankruptcy than to get the easy way out (aka a government handout) is a mistake that only leads to American taxpayers being out a lot of money. (bold is my emphasis)
For the TARP, it depends on the biggest remaining investments: AIG and the remains of the auto bailout, GM and GMAC (now called Ally Financial). The net outstanding amount of those three companies together is about $61 billion. At this point, it seems likely that Treasury will ultimately recoup its bailout of AIG. The auto companies, on the other hand, seem likely to result in a loss approaching $20 billion, according to both Treasury Department and Congressional Budget Office estimates.
When people hear about the losses we will incur because of the fed’s decision to bail the auto industry out of the messes they put themselves into, GM is usually the only company that comes up. And while GM is the biggest culprit to stick their bad debt to the American people, we can’t ignore Chrysler enjoying the free Obama money they gladly accepted and aren’t paying back. (Again, bold emphasis done by me)
Ultimately, the bailout of GM seems likely to result in the TARP’s single biggest loss. But since the government still holds about a third of the company’s stock (currently worth about $10 billion), we don’t include it on our list of losers yet. It’s possible the government will sell the stock for more than it’s currently worth, recouping more of its investment.
For now, the reigning bust is the $2.3 billion investment in the bank CIT, which landed in bankruptcy less than a year after its bailout. Second on the list is Chrysler, which resulted in a $1.3 billion loss.
Of course, when the One brags about saving the auto industry, he fails to mention these billions in losses. Go figure, eh?
Definitely check out the whole article. Reports like this are important because they point out where your and my money are going via the fed’s discretion and whether or not we will ever see that money again. And without them? People may actually be foolish enough to think Obama is telling the whole truth when it comes to his bailouts.