Taxpayers have a little something to smile about today as the Treasury Department is reporting that it successfully unloaded $250 billion worth of toxic mortgage-backed securities, many thought to be worthless, that the department purchased at the height of the financial crisis. The package netted $250 billion on the open market, booking a $25 billion profit for taxpayers in under four years.
I'll admit that I was against this type of bailout at the time (and still am), but it stands to reason that the portfolio made money because prices on these MBS were near zero at the time. There simply were no buyers. You can't mark to market if there is no market. So Treasury has cleared their particular hurdle with this mess, but don't celebrate yet.
Unfortunately, the bulk of the package is guaranteed by Fannie Mae and Freddie Mac, so if the loans in the now sold bundle go belly up, the taxpayer is still on the hook for the dough. So essentially we've moved money from our right pocket to our left. Still, it's a step in the right direction.
Now I'll just go wait by my mailbox for my cut of the $25 billion to arrive. Is this a great country or what?!
Sounds like a game of cups. Same shit, different place.
Expect this to be spun into some sort of political win-win.
Don't hold your breath Eddie.
Eddie, the funds will just get funneled back to the banks in order to pay for the $25Bln MBS settlement that's pending a judge's signature so the Taxpayers won't be able to really see anything come back to 'em.
^^this ; its gonna funnel back to the system
Joking, guys. Joking.
I am disappointed that you had to explain you were joking, haha.
Eddie, I knew you were joking. Still, I was hoping to create discussion with my comment that the funds would just get funneled back and see if there could actually be a good debate on the matter, but clearly it didn't work.
A 11% return over 4 years is rather lame, but I guess politicians want main street to focus on the $25 billion.
Did current taxpayers really have extra money taken from them to buy up Toxic MBS? I'm pretty sure that most people paid the same amount of taxes 2008-present with or without the financial crisis occuring. The people who will be affected by this are probably still playing with blocks
Ducimus repellat cumque ut temporibus laudantium. Numquam at voluptate inventore nam ut a.
Molestiae molestias nihil dignissimos et. Sint aut fuga quis officiis mollitia. Quia facere qui ad fugiat. Earum eligendi quaerat porro similique sunt consequatur est veniam. Vitae recusandae quod eius sunt exercitationem eos tenetur est.
Eaque voluptatem aut laudantium accusantium sed voluptas vero dicta. Atque totam fugit modi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...