Obama says bailout has 'turned a profit'

Source

President Obama on Tuesday asserted that the government has "turned a profit" with taxpayer bailout money now being repaid by large financial institutions, seeking for the second straight day to bolster public confidence in his handling of the economy.

Obama says government has so far turned a profit on money used to stabilize banks

"In the first round of repayments" from financial institutions that received TARP money, "the government has actually turned a profit."

Honestly I don't know what to make of this. First, even if it's true, what about the next repayments. Secondly, it makes you kinda wonder what really happen if somehow TARP is indeed profitable in the long term, it just doesn't register with me.

Nothing but rhetoric trying to up confidence. Heck, they admit as much in the article.

So Obama is practically saying " Mission Accomplished".

Oy vey, don't be so quick to pat your self on the back Mr P.

Ofcourse they're making profits; in the UK banks are charging 11% on loans!!!

Bring back NINJA loans and then we all declare bankruptcy.

Telegraph newspaper in UK this week had a massive front page headline saying "The recession is over". Source

[edit on 12-6-2009 by PrisonerOfSociety]

Originally posted by cautiouslypessimistic
Nothing but rhetoric trying to up confidence. Heck, they admit as much in the article.

The 'profit' is almost $2b.

Obama touts $1.8 billion 'profit' on bailout

President Obama said Tuesday the bank bailout has so far been a pretty good deal because the federal government "turned a profit" of $1.8 billion in interest payments on the first set of bank loans that were repaid.

But the president warned that not all of the bailout will be so sweet, saying the country "will not escape the worst financial crisis in decades without losses to the taxpayers."

For the second straight day, Mr. Obama sought to boost public confidence in his handling of the economy and bolster his argument that government intervention can work. He made the announcement a week after authorizing the government to take a majority stake in General Motors Corp.

So, in the end he thinks it would be a loss after all.