Dockside Chat - Bailouts work 1/2 the time...

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View Full Version : Bailouts work 1/2 the time...


baypro21
02-17-2009, 04:48 AM
but not usually for the banking industry. Over the years gov't bailouts:
Penn Central RR : $19.7B invested - sold for $3.1B (not good)
Lockheed : $1.4B - repaid and gov't made $100M in fees
Franklin Nat. Bank: $7.8B - lost $5.1B (not good)
New York City: $9.4B - wash (better than losing)
Chrysler (1st time):$4B - gov't made $660M
S & L: $300B - none paid back, taxpayers $180B, private sector the rest
Airlines: $18.6B - gov't lost about $300M (chump change)

So, if you have a business model that is actually capable of making money and the gov't bails you out, you may be able to repay. The gov't is now bailing out toxic mortgages and other losers, who's gunna foot the bill? That's right, the same people that paid for the Savings and Loan bailout.




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