Monday, October 25, 2010

Wall Street Bailout Returns 8.2% Profit Beating Treasury Bonds

Government's spending is finally proven to be working after Wall Street reports a return of 8.2% profit 2 years after the Government released the financial bailout package through the Troubled Asset Relief Program. This program provides taxpayers with higher returns than yields paid on 30- year Treasury Bonds and ironically was proposed and signed by president G.W. Bush, whose administration was largely blamed for the recession.
The government has earned $25.2 billion on its investment of $309 billion in banks and insurance companies. That beats U.S. Treasuries, high-yield savings accounts, money- market funds and certificates of deposit. It's great to see that government's spending actually works somewhat and hopefully employment rate will increase as financial firms start making positive profits.

1 comment:

Andrew Martin said...

It is great to see the bailout money working for those on Wall Street, and it sounds as though Ford and GM are doing great as well and have been able to pay off debt. Gaining higher yields than 30-year treasury bonds is not a huge accomplishment, but it is a great start.