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I absolutely agree, the government can certainly have other goals other than making good investments. But don't muddy the waters by saying that they are making
by cool_dude85 6y ago
I absolutely agree, the government can certainly have other goals other than making good investments.
But don't muddy the waters by saying that they are making money on the program if they're giving below market loans. They might have good reasons to do it, but they're not making money on the deal.
- Mirioron 6y agoThey are making money though. The government doesn't make money for the government. It's not like a corporation. The government makes money for the country. Saving existing institutions from collapse during a disaster tends to be a very good investment for that.
- drtillberg 6y agoWhen the Fed creates $xxx billion it "makes" money. The real question is whether the Fed bought something worthwhile. The fact that a market coalesced around the asset isn't that significant because the Fed can't withdraw from the market now without watching prices for the asset collapse.
- gen3 6y agoThe point of my argument is that the government can save money by keeping a company from folding. Having a bad return of a couple hundred million is better than a loss to society of larger proportions. My point is to avoid the whole, a penny wise and a pound foolish, thing.