This is rather amusing really:
The current estimate of the eventual loss that taxpayers will be left with from the Troubled Asset Relief Program (TARP) is $60bn, according to a report from the watchdog for the programme.
\”It is a widely held misconception that TARP will make a profit,\” said Christy Romero, the inspector general for TARP.
OK, so we\’re going to get all sorts of shouting that we\’ve lost money bailing out the banks therefore neoliberalism blah blah.
But that\’s not quite true:
The White House estimates that the capital injections into the country\’s banks have reaped a profit of $205bn for taxpayers, but has forecast an overall loss for a bail-out that was engineered by former US Treasury Secretary Henry Paulson.
Bailing out the banks made tonnes of money.
Taxpayers are still owed $119bn from TARP, with the majority of that still tied up in the rescue of insurer AIG, carmaker General Motors and mortgage lender Ally Financial.
Would anyone like to bet that in the end, once everything has been totted up, it\’ll be GM which is the only loss in the portfolio?
Which would be a very different story from neoliberalism blah blah, wouldn\’t it?