TARP turned a profit, and a lot of this will, too.
The 500 bn bailout fund will be levered 10 times to become 5 trillion, finances at fed rates of close to zero, and earning 4% per annum on corporate loans at penalty rates. That’s a return of 400 billion a year as long at it’s outstanding.
The stimulus checks and unemployment insurance are also taxable. The net on this thing is going to be a lot less than 2 trillion.
And not only that, the alternatives were either the greatest global depression since the 30’s or mass illness and death.
As Gladys Knight and the Pips sang, you got to make the best of best of a bad situation.
I agree with you.
A third will flow back to the Federal government in the form of taxes. In addition to disbursements likely being taxable income, every time it’s spent, the labor of what was bought pays taxes.
The loans will get paid back. Equities can be sold.
And the alternatives are bad.