Does Anyone feel like Bailing

[TheMercenary]

Great, this shit has to stop sooner or later...

Fannie Taps Treasury for $15.3 Billion More After a 10th Loss

Feb. 27 (Bloomberg) -- Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss.

The mortgage-finance company posted a fourth-quarter net loss of $16.3 billion, or $2.87 a share, Washington-based Fannie Mae said in a filing yesterday with the Securities and Exchange Commission.

Fannie Mae, which owns or guarantees about 28 percent of the $11.8 trillion U.S. home-loan market, has been hobbled by a three-year housing slump that wiped 28 percent from home values nationwide and led to record foreclosures. The company, which posted $120.5 billion in losses over the previous nine quarters, and rival Freddie Mac were seized by regulators in September 2008.

“Our financial results for 2009 reflected the continued adverse impact of the weak economy and housing market, which has resulted in record mortgage delinquencies and contributed to our recording significant credit-related expenses and net losses during each quarter of the year,” Fannie Mae said in the filing.

For the full year, Fannie Mae’s loss widened to $74.4 billion from $59.8 billion in 2008.

http://www.bloomberg.com/apps/news?p...d=alet_UTqF04M

[tw]

Originally Posted by TheMercenary

Great, this shit has to stop sooner or later...

It was. Cheney types are no longer saying, "Deficits don't matter". Now we must wait for the resulting flood to withdrawal. According economists who studied these events some 114 times in al OECD economies, we still have maybe eight more quarters of this until improvement begins. Cheney proved that deficits do matter. And cause massive economic malaise four or ten years later when economic forces takes revenge on fiscally mismanaged economies.

Time to complain about our economics mistakes was when this could have been averted and was being created in and after 2003.

Originally Posted by tw

Time to complain about our economics mistakes was when this could have been averted and was being created in and after 2003.

You mean the Bush tax reform that was pushed through Congress through the reconciliation process:

Economic Growth and Tax Reform Reconciliation Act of 2001
and
Jobs and Growth Tax Relief and Reconciliation Act of 2003

and which contributed an estimated $1+ trillion to deficits and did not result in either economic growth or jobs?

[tw]

Originally Posted by Redux

You mean the Bush tax reform that was pushed through Congress through the reconciliation process:

Economic Growth and Tax Reform Reconciliation Act of 2001
and
Jobs and Growth Tax Relief and Reconciliation Act of 2003

and which contributed an estimated $1+ trillion to deficits and did not result in either economic growth or jobs?

As Warren Buffet so accurately noted, the only tax cut is one that cuts spending.

Cutting taxes (welfare to the rich) means economics takes revenge on everyone typically four and ten years later. Deja vue.

[TheMercenary]

A government report released Thursday warned that local officials are shorthanded and some states lack proper oversight in handling the deluge of new funding from the $787 billion economic stimulus.

The report also revealed that three states — Florida, Georgia and Ohio — have appropriated zero dollars for highway development despite being granted billions in road construction funds meant to spur job creation.


"Due to fiscal constraints, many states reported significant declines in the number of oversight staff, limiting their ability to ensure proper implementation and management of Recovery Act funds," the Government Accountability Office report said.

http://www.politico.com/news/stories/0409/21642.html

[Shawnee123]

GM has paid off the last of its bailout loans:

http://money.cnn.com/2010/04/21/auto...dex.htm?hpt=T1

[classicman]

Originally Posted by Shawnee123

GM has paid off the last of its bailout loans:

NEW YORK (CNNMoney.com) -- General Motors has made a final payment of $5.8 billion to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans, the company said Wednesday.

Overall, GM received $50 billion in federal help.

In return, the government got $2 billion in preferred stock and 61% of the company's privately held common shares.

Taxpayers could recoup money from a possible sale of GM stock to the public in the future.

OK, so you and I, gave them $50 Billion and they gave us back $6.7Billion.
Thats great... or is it?

What is the value of that stock today? $.63 a share and the other stock, I cannot find. The last few articles I saw mentioned zero, but I can't believe that...Why? I dunno.

[Shawnee123]

Yeah, I read the article.

It's only part of the grander scheme, but it's something. More than everyone was crying about in the beginning "boohoo we'll never see any money back."

Oh hell, let's just post the whole article.

GM pays off its bailout loans
By Peter Valdes-Dapena, senior writer April 21, 2010: 1:13 PM ET


NEW YORK (CNNMoney.com) -- General Motors has made a final payment of $5.8 billion to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans, the company said Wednesday.

"I am very pleased to announce that, as of today, General Motors has repaid, in full and with interest, the loans made last July by the U.S. Treasury and Export Development Canada," said GM chief executive Ed Whitacre, speaking at a plant in Fairfax, Kan., where GM builds Chevrolet Malibu and Buick LaCrosse sedans.


Whitacre also announced that GM would make two big investments for production of the next-generation Malibu: $136 million in the Fairfax facility, which will become the primary production point for the car, and $121 million in its Detroit-Hamtramck plant, which will provide additional production at times of peak demand.

GM has already begun manufacturing the Chevrolet Volt electric car in Hamtramck, where it also makes the Buick Lucerne and Cadillac DTS large cars.

On Tuesday night, the automaker wired $4.7 billion to the U.S. Treasury Department and $1.1 billion to Canada.


"GM's ability to pay back our loans ahead of schedule is a sign that our plan is working," Whitacre said.

But the loan money is only a fraction of the financial support that the federal government gave to GM over the past 12 months to stop it from going out of business.

Overall, GM received $50 billion in federal help. In return, the government got $2 billion in preferred stock and 61% of the company's privately held common shares.

Taxpayers could recoup money from a possible sale of GM stock to the public in the future.

A White House report issued shortly after GM's announcement was upbeat on the progress that both General Motors and Chrysler have made since coming out of bankruptcy but noted that the government would likely not make a profit on the funds it had invested.

"Overall, the investments made by the prior and current administration in GM, Chrysler, and GMAC will likely result in some loss, but the U.S. Treasury anticipates it to be much lower than forecast last year," the report said.

Mark Reuss, president of GM's North American operations, said in an interview with CNNMoney.com that he was "positive" that GM's stock would ultimately be profitable for taxpayers.

[TheMercenary]

This was only the first payment of the larger loan. They are still owned by the US Government, Government Motors.

[classicman]

Incorrect Merc, That is their final payment - We can only hope that the virtually worthless stock we currently own makes up the difference between the $50 billion given and the $6.7 billion that GM paid back. If I understand this correctly, basically we need this stock to equal $43 Billion just to break even.

Doesn't this mean that the Gov't now has a vested interest in giving GM all the advantages they can even over other American car companies, especially Ford who took no money?

[classicman]

JPMorgan credit analyst Eric Selle wrote in a client presentation last week that a public GM could have a market value of $63 billion. That could be aggressive, but $50 billion is a real possibility. After its near-death experience, GM finally has an excellent balance sheet, with $42 billion in cash at the end of the third quarter, against $29 billion in debt and preferred stock. This admittedly reflects Uncle Sam's largess in pumping $50 billion into GM in late 2008 and 2009, plus obligations the automaker shed through its restructuring.

Link

[Spexxvet]

Originally Posted by classicman

Link

You mean if the government sells GM for $63 billion, the taxpayers could make a $13 billion profit from the deal? It'll never happen...

[classicman]

Not my words and the link is from msnbc so you know the numbers are probably "enhanced"

The govt. has made a nice profit from most of the TARP bank bailouts.

http://thehill.com/blogs/on-the-mone...percent-profit

The biggest payback is in the works. Treasury Dept is expecting to start selling off 1.5 billions shares in Citi that it acquired in return for its $45 billion bailout of Citi.

It purchased the equity shares at $3.25/share at the time. The selling price of Citi stock (as of last week) was $4.61/share. Expect another $7+ billion profit.

http://www.washingtonpost.com/wp-dyn...042602106.html

BUT, the GM and AIG bailouts still overshadow the entire TARP program.

Would the impact on the economy of NOT bailing out GM and AIG have been only marginal, thus not worth the attempt to save the companies in order to keep the economy from tanking? We'll never know.

[TheMercenary]

Unemployment at 9%, where are all the Shovel Ready Jobs the scumbags promised?