The U.S. government's bailout has been less than effective in helping U.S. homeowners avoid foreclosure and could end up costing more than expected, according to a report from the Troubled Asset Relief Program's special inspector general.
The federal bailout program will end up costing taxpayers at least 85% less than expected, according to the Treasury Department, which estimates a bill of $30 billion to $50 billion. The Congressional Budget Office initially expected the program to cost $350 billion.
According to a new analysis, the U.S. government would have to sell all its shares in General Motors at an average price of $133.78 a share in order to break even on its stake in the automaker. Should U.S. taxpayers be worried?
It's looking less likely that taxpayers will recoup the $50 billion spent to bail out General Motors. A government watchdog says the U.S. Treasury would need to sell its shares for $133.78 each to break even.
Muriel "Mickie" Siebert, the grande dame of Wall Street, says that Lehman Brothers should never have collapsed, that government's steps were a necessary evil and that there is a still a need for more regulation. She warns that left unregulated, the markets and the economy could still face turmoil ahead.
When the millionaire CEO of electric-car startup Tesla flew to Washington, D.C., to secure a $465 million U.S. government loan, he flew on his own private jet. But he billed the money-losing startup for the trip. Legal, yes. Appropriate, no.
Banks are not the enemy. Although many imperfections exist in our financial system, turning banks into a target or a tool for recovery will end poorly. Over time, things will work out in the absence of counterproductive, even if well-intentioned, meddling.
