Bailout Overseer: Treasury Overpaid By Nearly $80 Billion

Washington Post - Economy Watch ^ | February 5, 2009 | Frank Ahrens

[IrishPennant]

Bailout Overseer: Treasury Overpaid By Nearly $80 Billion

UPDATED WITH FURTHER COMMENTS FROM BAILOUT OVERSEER:

Harvard econ Prof. Elizabeth Warren, testifying before a Senate Banking committee hearing underway now to judge the performance of the $700 billion bailout, said that the Treasury overpaid by $78 billion in its first round of investments into troubled banks.

Warren said that Treasury spent $254 billion to purchase assets whose actual value was only $176 billion, "a shortfall of about $78 billion," she said.

Warren said Treasury failed to "price for risk," and used a metaphor to explain: It's as if Treasury was looking at 10 paintings and promised to pay $1 million for each, even though "one is a Picasso, one is a Rembrandt" and the other eight are not.

"There may be good policy reasons for overpaying," Warren said, "but without clearly delineated reasons, we can't know that."

more at link...

[IrishPennant]

And we are going to let Zer0 Fear Monger this bill into be passed as quickly as possible? OMG!!!

[mgc1122]

What was Paulson’s cut for this gift ?

[IrishPennant]

More then a toaster and calendar, I’m sure...

[Dianna]

Well, I, for one, am SHOCKED. Totally. /s

[Henchster]

Warren said that Treasury spent $254 billion to purchase assets whose actual value was only $176 billion, "a shortfall of about $78 billion," she said.

That means the Fed overpaid to the tune of 44%!

Your tax dollars at work.

[Dapper 26]

What? The government screwed up....again? I’m shocked! Those Bozo’s couldn’t add 2+2 even if it had twelve zeros behind it. So much for the overschooled (Harvard, Yale, Stanford) and undereducated running our country. We’re too smart times zero for our own good.

[Fresh Wind]

Warren said that Treasury spent $254 billion to purchase assets whose actual value was only $176 billion

That's OK, because they paid for those assets with Monopoly money

[IrishPennant]

If this gets more legs with the MSM (And good luck there, huh?) it could do a little more damage to what is left for support of the Spendulus package!!!!

[70th Division]

This is why we have to RUSH this second bill through. (SAR)

[IrishPennant]

That's OK, because they paid for those assets with Monopoly money

HAhahahahahaha...but Holy Crud - do you know how much money you would have spend just to buy enough Monopoly Games to get $78 ba ba ba ba Billion in funny money???

[IrishPennant]

True...and I cannot see why someone, anyone is not saying "Hold on...slow down...we aren't talking about buying new drapes here...why the hurry?"

Instead all we have is Zer0 using public fear mongering going live and in OpEds to say we MUST hurry or the sky will fall.

[Tolerance Sucks Rocks]

This Big Government Moment brought to you by Hank the Concrete Head and Timmy the Tax Dodger!

[Arguendo]

Warren’s very liberal and wants all sorts of pro-consumer bankruptcy “reforms,” but she has no lover for the banks and will at least try to make sure taxpayer money isn’t thrown at them wastefully.

[70th Division]

Oh, they are saying it but the news in NOT reporting it.

[Fresh Wind]

Oh, you don't actually have to buy Monopoly games to get the money. You can download money from their website.

[IrishPennant]

SONONAGUN....and I’ve been going to the bank!!!!