Quote:
Originally Posted by ChinoCoug
Yeah, but not to the tune of 40% of GDP.
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You make it sound like they gave away 40% of GDP to the financial sector for nothing in return. That just isn't true. I don't know that the 40% number is accurate with respect to Obama's commitments (he isn't responsible for TARP, but be is responsible for the stimulus package and PPIP), but regardless, the financial commitments have been investments much more than "bailouts." Those investments have come with heavy strings attached, so much so that the "oligarchy" which Obama is supposedly beholden to can't wait to pay the funds back (which the government would love, by the way).
The government has taken equity in the entities it has funded in the form of warrants and preferred stock. A recent analysis by the CBO indicated that, with respect to TARP (Bush's plan), the US got equity worth about $.66 for each $1.00 it invested. PPIP is designed to avoid that kind of valuation gap.
I simply find it amusing that Arch and Waters trot out the "beholden to the financial oligarchy" with Obama when Obama is actually taking many steps that Wall Street hasn't "approved."