Now this is news: The government does something that actually works

August 31, 2009 – 10:42 am – No Comment

It’s been almost a year since the government started bailing out banks and already it is started to see some profits from the money given to all the banks. At the time of the bailouts, many people thought that profits from the money put into the banks would never be seen, but now we’re all a bit taken aback by the profits the government is already seeing.

The government has started to get profits from the eight largest banks that were bailed out. The banks have fully repaid their loans from the government.

Of course, there wasn’t any word on the other hundreds of billions of dollars that were given out and now the FDIC, which is an insurance company that is subsidized by the government, is running out of money from buying up banks that have failed. The government is still facing huge losses from all the bailed out banks and especially from AIG, Freddie Mac, and Fannie Mae. Of course, the bank bailouts don’t include the huge loans given out to GM and Chrysler.

Still, the news coming out that some of the money given to the companies has turned from a worry-some loan to a bit of a profit is welcomed and surprising news.

Government bailouts were not something that was looked at as a very smart choice for the government to make concerning the banking (and automaker) industry. However, it looks like some of the bailouts are actually panning out and doing better than the government could have expected. It was really hoping for 5% on its money, but the 15% that has been gained by the time of this recent news release is a surprise even for those in the government.