Press Catches Up to Us: Taxpayers Are Losers

WSJ article:

http://online.wsj.com/article/SB124897332666294327.html

GSEs Unlikely to Repay U.S. in Full


Please refer to my post on July 10, 2009.

http://populus-vox.blogspot.com/2009/07/taxpayer-will-never-be-paid-back.html

The Taxpayer Will Never Be Paid Back

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.....

The Ickey Asset Shuffle

http://online.wsj.com/article/SB124338836675757049.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_cSJOgFLwPs


The first link: WSJ story about banks wanting to effectively keep assets and let the government (us) eat the losses.

The second link: FDIC's response

Loyal reader JP should have a great laugh.

Taxpayers To The Rescue......Again

http://www.nytimes.com/2009/05/21/business/economy/21pension.html?_r=1&8au&emc=au

Please refer to the 4/8/09 post. This is getting out of hand. We are insuring our own assets. The FDIC is done, the PBGC is done, the NCUA is done.

Corporations are getting a free ride, it is just not right.


More on the NCUA:

http://www.reuters.com/article/gc04/idUSTRE54J67120090520

GMAC To Get More of Our Money

http://www.detnews.com/article/20090520/AUTO01/905200376/1025/POLITICS03/Feds-to-ante-up-$7.5B-to-help-GMAC


Please refer back to posts made on 5/10 & 5/11, it was only a matter of time.