Sunday, July 10, 2011

How has the "bailout" turned out?

Allan Sloan and Doris Burke over at the Washington Post have a piece (see here) in which they investigated the results of the bailout.  They have researched the "money trail" and their findings are quite surprising.  They conclude the piece as follows:

When our boss assigned us to find out how much the financial rescue cost, we expected to find a monumental loss because Fannie Mae and Freddie Mac seemed like a bottomless pit. Instead, we discovered that bailout profit payments from the Fed — which we hadn’t previously thought of as a profit center — are virtually certain to exceed taxpayer losses on Fannie and Freddie. We were surprised — and pleased — to discover taxpayers showing a profit on the bailout. We hope that you are, too.

Update: Bob Eisenbeis over at The Big Picture (see here) takes issue with Sloan and Burke's conclusions and use of data.

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