4 ms·
isn't it almost always permanent though?
by tehlike 7y ago
isn't it almost always permanent though?
- jonas21 7y agoNo. For example, TARP was completely unwound after about 6 years (and ended up making a small profit too). > On December 19, 2014, the U.S. Treasury sold its remaining holdings of Ally Financial, essentially ending the program. TARP recovered funds totalling $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit [1] https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
- listenallyall 7y agosome quick math... 15.3 over 6 years, about 2.5b/yr, off of $426 invested... just a bit over 0.5% ROI. Meanwhile in late 2008, 10 yr notes were yielding about 2.6%. So the "profit" was about 80% less than the risk-free rate. https://www.clevelandfed.org/en/our-research/indicators-and-data/yield-curve-and-gdp-growth/yield-curve-archives/yc-20081217.aspx https://www.clevelandfed.org/en/our-research/indicators-and-...