I hope this continues to be true. To profit that would mean a return of all invested funds. That would be great! It would be great to see the government be able to lower the national debt through this process, after all the situation has made the wealthy tons of money. Those with money to invest have had the opportunity to make 400%+ on this financial crisis. The Golden Rule. Oh, and by the way, many of the good folks that created this mess are the ones now making huge profits! They knew when to get out, go to cash, wait for the crash and get back in. The Good Ol Boy Rule.
Good investment? U.S. makes $4 billion profit on $700 billion TARP
The $700 billion Troubled Asset Relief Program (TARP), which former Treasury Secretary Hank Paulson set up in October 2008 to buy financial toxic waste, has made the U.S. a $4 billion profiton $240 billion that it invested in hundreds of banks. Never mind that TARP has not purchased any toxic waste. The TARP’s yield so far is about 15 percent annualized — roughly triple the five percent expected last October.
The source of these profits has mostly been so-called warrants, which are essentially options to purchase common shares at a low, predetermined price. Since that price is much lower than the banks’ current market prices, the U.S. has been able to negotiate much higher prices for the warrants from the banks that took TARP money.
Read the full story here: http://www.dailyfinance.com/2009/08/31/good-investment-u-s-makes-4-billion-profit-on-700-billion-ta/
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