Thanks to TARP loans that saved GM, the Treasury ended up with a major stake in the world's largest automaker, and it still holds 500 million shares -- 32% of the company. Here's the reason it won't be selling them any time soon.
About a month ago, the Germany government sold $5 billion worth of Eurobonds that paid an average interest rate of -- get this -- negative 0.0122%. That's right: These bonds are guaranteed to lose value. So why did they sell? In a word, it's all about risk.
Four times in five years, lawmakers have introduced the Stop Trading On Congressional Knowledge Act to bar senators and representatives from investing based on knowledge they gained in the course of their duties. Three times, the STOCK Act has died in committee. Will the fourth time be the charm?
F. Scott Fitzgerald wrote: "Let me tell you about the very rich. They are different from you and me." He was right: The rich get better returns on investment. The Harvard endowment rose 21.4% to $32 billion in the university's fiscal year, which ended on June 30.