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I just don't understand how there can be a profit. TARP was created to pay companies holding toxic mortgages and other worthless assets. How is it that the gove

I just don't understand how there can be a profit. TARP was created to pay companies holding toxic mortgages and other worthless assets. How is it that the government pays for worthless assets and makes a profit? I think the financial masters of the universe have found some way to screw us and it's just hiding in some accounting tricks.

IdEntities 4y ago
The real loss is in the lower rates at which the financial companies with a now-explicit government backstop are able to borrow money. That's a subsidy worth hundreds of billions of dollars per year which is never included in this sort of accounting.