No Shock: Stimulus Is A Money Loser

Investors.com ^ | January 12, 2012 | INVESTORS BUSINESS DAILY Staff

[Kaslin]

Economic Recovery: The results are in, and last year's $787 billion stimulus not only failed to do what it was supposed to do, but it has also turned out to be one of the worst investments in economic history.

Remember the debate in 2008 over the bailouts then being put together by the Treasury, the Fed and the Democratic Congress? Proponents often raised the possibility that any bailout would make money for taxpayers.

Didn't work that way. As we've discovered, the American people aren't just saddled with the ongoing costs of the various and sundry stimulus programs. They're also taking huge losses in doing so.

On Tuesday, the Treasury estimated that taxpayers had lost $68.5 billion in the fiscal year ended Sept. 30, 2009, on the Troubled Asset Relief Program and that the losses could go as high as $120 billion.

That isn't imaginary cash stuffed under some government cushion. It's a tax on you that comes straight out of your pocket. It's money that won't be used to fund private-sector jobs or pay for a child's education or a new house. It's gone.

Meanwhile, the Federal Reserve says it earned $45 billion last year — the largest one-year profit in its 96-year history.

As the Washington Post points out, that will easily eclipse "the expected profits of Bank of America, Goldman Sachs and JPMorgan Chase combined."

Why the big Fed profit? Basically, it printed money, bought Treasuries and private bonds with what it printed (we called it a bailout), then watched as interest on the investments flowed in. At year-end, the Fed held $1.8 trillion in U.S. government debt and mortgage securities, up from $497 billion a year earlier.

[EGPWS]

The results are in, and last year's $787 billion stimulus not only failed to do what it was supposed to do, but it has also turned out to be one of the worst investments in economic history.

How stimulating this news is. /s

[sionnsar]

it has also turned out to be one of the worst investments in economic history.

Do... Ya... Think...?????????

[DemforBush]

“Why the big Fed profit? Basically, it printed money, bought Treasuries and private bonds with what it printed (we called it a bailout), then watched as interest on the investments flowed in. At year-end, the Fed held $1.8 trillion in U.S. government debt and mortgage securities, up from $497 billion a year earlier.”

In the words of the late, great Charlton Heston:

“IT’S A MADHOUSE! A MAAADHOUSE!!!”

[rawhide]

This stimulus was a reward to friends, at the cost to American taxpayers, The taxpayers were screwed by the democrats and I do not hesitate to believe these politicians received kickbacks-in-kind.