So, the snuggly insurance giant, American International Group (AIG) has paid back about $4 billion of their bailout debt, leaving them with an outstanding balance (including interest) of about $21 billion.
So, what the fucks with the heading of this post?
Well, some analysts are saying that because of the amount of interest already gained and to be gained from the payback of bailout funds, the government will come out way on top. So far, the Treasury Dept. has raked in $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government: Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T, each brought in $100 million to $334 million in profit.
That sounds like a lot of money...until you look at the figure that was doled out for the bailout: $700 billion. Now I'm not a math major but the reclaimed funds, plus AIG's recent payment does not equal $700 billion. In fact, if you take into account the precipice we stand on with giants such as Citi Bank, Bank of America, American International Group, the mortgage finance companies Fannie Mae and Freddie Mac, and the automakers General Motors and Chrysler, we're still closer to fucked than home free. Tack on toxic mortgages that the Treasury Dept has guaranteed for billions of dollars and that rosy $4 billion starts looking like a flea loogie in giant's bucket.
On the flip side however, having read and researched the possible unspeakable madness potential had the banks not been bailed out, I'm not necessarily saying the bailout was a complete failure. In the cluster fuck situation we were in, any decision would have yielded significant cons outweighing the pros. The question now is, what does the future hold?
For some, the idea of government getting the fuck out of the private sector is a much anticipated and pushed for scenario...
“The taxpayers want their money back and they want the government out of our banking system,” Representative Jeb Hensarling, a Texas Republican and a member of the Congressional Oversight Panel examining the relief program, said in an interview.
Ummmm, representative Hensarling, fuck you.
Your precious little private sector banks wouldn't even be living and breathing if it weren't for the corporate pawns at the top handing out meal tickets. The private sector is the reason we're in this cluster fuck to begin with! The Federal Reserve remains a private corporation...oh, do you think that maybe they had something to do with the tumbling of Wall Street and our economy? No, they only handle our money! Privatization of the economy is synonomous with the top 1% greedily hoarding and dealing our money with little to no say from the other 99%. Sounds great, sign me up!
The bailout was not a good idea. It was a bad idea in a terrible situation. Letting all the banks and monster corporations fail...also a bad idea. The only way to stop this from happening again is to show corporate America that this handout wasn't a friendly donation. It was a disaster loan, needs to be repaid and will not be repeated. They need to be put in a choke hold, not given a longer leash. Put the lobbyists and corporate puppets where they belong, as far away from our government as possible. Of the people, for the people and by the people. Not of the corporations, for the corporations and by the corporations.