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That's an excellent point. Talk of the Govt. making a profit is nonsense until it's clear how much loss on those assets it ends up absorbing. According to that
by pigbucket 16y ago
That's an excellent point. Talk of the Govt. making a profit is nonsense until it's clear how much loss on those assets it ends up absorbing. According to that Bloomberg piece, though, Citi was supposed to cover the first $29B of losses, so that plus earned dividends plus the relatively paltry share value appreciation means there's a bit of a buffer for the Govt.
- stretchwithme 16y agoexactly. And even if the government is able to inflate away the horrific losses its trying to hide from us in the mortgage market, how much these paper profits will ultimately cost all of us is what matters.