Please click the above graphs to expand. Theses graphs track the cumulative annual earnings for each company (1999, 1999 + 2000, 1999 + 2000 + 2001, etc.). For example, Freddie Mac's net income from 1999 - 2007 was $28.28 billion. Keep this in mind when evaluating the following (I used the most conservative measure of government investment, so use your imagination if you want to see how much worse it can get.):
Freddie Mac:
Current Market Capitalization: $360 million
Government Investment: $50.7 billion
2009 Q1 Earnings: -$10.2 billion
Fannie Mae:
Current Market Capitalization: $570 million
Government Investment: $34.2 billion
2009 Q1 Earnings: -$23.2 billion
AIG:
Current Market Capitalization: $1.3 billion
Government Investment: $69.8 billion
2009 Q1 Earnings: -$5.4 billion
GM:
Current Market Capitalization: $702 million
Government Investment: $50.7 billion
2009 Q1 Earnings: -$6 billion
Quite simply, how are these companies going to generate the earnings to pay the taxpayer back? Why would the government invest so much money when the stock market is placing a dramatically lower valuation on these companies? Question for the ages.....
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