Bernanke: Fed will make profit on bailout

[WA_Vol]

From CNN

NEW YORK (CNNMoney.com) -- Federal Reserve chairman Ben Bernanke said Monday he's confident the Federal Reserve will make money on the trillions it has pumped into the economy since the start of 2008.

"I think we're in very good shape," Bernanke said, answering questions following a speech at the Economic Club of Washington. "I do believe we're going to get back all the money, and indeed we'll be showing for the taxpayers fairly significant extra income."

Most of Bernanke's speech was focused on the outlook for the U.S. economy, and he repeated his earlier forecasts of moderate growth through next year, dogged by continued high unemployment.
Bernanke said that the U.S. economy continues to face "formidable headwinds" that are likely to result in only a moderate recovery.

 

[droski]

funny. i was regurally flamed by lawgator and others when i said we would make money on the tarp.

 

[rjd970]

Haha. This is a nice little cut and paste. I also see a link isn't included.

Allow me:

Bernanke: Fed will make profit on bailout - Dec. 7, 2009

Let me do my own cut a paste:

Bernanke was referring specifically to Fed programs -- not the Troubled Asset Relief Program (TARP). The U.S. Treasury will likely lose money on TARP, though the Obama administration is expected to announce soon that losses will be $200 billion less than initially expected.

"Household spending is unlikely to grow rapidly when people remain worried about job security and have limited access to credit," he said.

Bernanke repeated earlier assurances that inflation is not a deep concern, despite the trillions of dollars the Fed pumped into the economy.

And he's confident that the changes being made in oversight of banks and Wall Street should prevent another crisis such as the one that hit financial markets a year ago.

Right, because I care if the Fed makes money. We are still in debt over this craziness and will likely see a loss. And the last two sentences don't exactly give me a warm fuzzy.

 

[WA_Vol]

Haha. This is a nice little cut and paste. I also see a link isn't included.

Allow me:

Bernanke: Fed will make profit on bailout - Dec. 7, 2009

Let me do my own cut a paste:



Right, because I care if the Fed makes money. We are still in debt over this craziness and will likely see a loss. And the last two sentences don't exactly give me a warm fuzzy.

Look closer, the link was listed at the start of the article. The article was too long to paste completely (unless your GSvol)

 

[rjd970]

Look closer, the link was listed at the start of the article. The article was too long to paste completely (unless your GSvol)

Yeah but you pasted the beginning and end of the article, leaving out the middle. I mean, come on now.

 

[BigPapaVol]

Yeah but you pasted the beginning and end of the article, leaving out the middle. I mean, come on now.

But we don't know how the actual bailout funds worked. We know for certain that only a small majority went to troubled asset relief. Given that our huge move toward socialism by using these exact funds set banks nationwide seeking funds to pay it back asap. The crap that went to Detroit is where the losses are going to remain.

 

[rjd970]

But we don't know how the actual bailout funds worked. We know for certain that only a small majority went to troubled asset relief. Given that our huge move toward socialism by using these exact funds set banks nationwide seeking funds to pay it back asap. The crap that went to Detroit is where the losses are going to remain.

TARP is still going to lose money, and it is ultimately paid for by the taxpayer. The losses will remain with both that and the auto bailout as far as the taxpayer is concerned. Is the Fed going to take the money it made off this and pay off some of the national debt with it? Are we going to see dividend checks for the American public, or tax relief? I just don't see how the bottom line is going to be any different for me or you.

This whole philosophy of bailouts in any form is what I find troubling.

 

[vols4sure]

TARP is still going to lose money, and it is ultimately paid for by the taxpayer. The losses will remain with both that and the auto bailout as far as the taxpayer is concerned. Is the Fed going to take the money it made off this and pay off some of the national debt with it? Are we going to see dividend checks for the American public, or tax relief? I just don't see how the bottom line is going to be any different for me or you.

This whole philosophy of bailouts in any form is what I find troubling.

Currently under the law, the unused funds automatically go to paying down the debt. However, Congress can always amend the law to do whatever they want to do with it ....

 

[BigPapaVol]

TARP is still going to lose money, and it is ultimately paid for by the taxpayer. The losses will remain with both that and the auto bailout as far as the taxpayer is concerned. Is the Fed going to take the money it made off this and pay off some of the national debt with it? Are we going to see dividend checks for the American public, or tax relief? I just don't see how the bottom line is going to be any different for me or you.

This whole philosophy of bailouts in any form is what I find troubling.

I understand your point, but I think much of the bank money was systemic support and nearly regulatory. Most of that will be recovered. The money pissed away propping up unions in dying auto companies was a terrible decision and had nothing to do with the original intent for the funds.

 

[rjd970]

I just read where Obama wants to take the remaining unused funds and use it for another stimulus round.

This whole thing is ridiculous beyond belief. Whether any of the used money will be recovered or not is beside the point for me. I am against any of it....stimulus, TARP or otherwise....on principle alone. I don't buy any of this business that it is in the best interest of the country, from Obama to Wall Street.

 

[WA_Vol]

Yeah but you pasted the beginning and end of the article, leaving out the middle. I mean, come on now.

The 2 most important parts of the article, the comments on being repaid for the bailout and his projections on the economy for the next 12 months.

 

[droski]

i love how obama clearly gave no thought whatsovever to the posibility of not spending the repaid tarp money.