Here is some perspective from Minanville:
According to Time Magazine (via Barry Ritholtz), since October, the government has deposited $165 billion into the accounts of the nation's eight largest banks, which are now worth $418 billion less than they were four months ago. Also, the Congressional Budget Office estimates that the government's preferred shares are showing a $20 billion loss, the magazine reports.
"All told, the government's annualized rate of return on its investment in the nation's largest banks is -1,096%."
Why am I not surprised that the investment our government has made into these banks -- by borrowing more money and creating monstrous new debt -- is worth substantially less than what we put into them? Since when has the government ever been known for making good investments?
Perhaps when President Obama uses his latest poll-induced buzzword, "investment", with the American People to make his spending plan appear palatable, we should be very skeptical. In fact, we should run, not walk, for the exits! The fact is that the so-called stimulus plan is nothing of the kind. It is spending. It is nothing more... than more pork! It's more of the same we've come to see from Washington for decades and generations of Americans! It's no change at all!
Perhaps when President Obama uses his latest poll-induced buzzword, "investment", with the American People to make his spending plan appear palatable, we should be very skeptical. In fact, we should run, not walk, for the exits! The fact is that the so-called stimulus plan is nothing of the kind. It is spending. It is nothing more... than more pork! It's more of the same we've come to see from Washington for decades and generations of Americans! It's no change at all!
