Wednesday, October 06, 2010

AIG Update: Good news?

Yeah, sorta:

"The Treasury Department says it expects the total cost of Troubled Asset Relief Program (TARP) aid to American International Group Inc. (AIG) and other federal aid to AIG to be about $30 billion."

I know, how's that good news?

Wait for it....

"The Treasury Department invested about $40 billion in helping AIG ... and the Federal Reserve System invested about $182 billion"

So according to Washingtonian-style advanced financial calculations, there's a "savings" of $192 billion, which is a good thing.

Of course, in the real world, we don't look at it as "saving" almost $200 billion, we look at it as wastefully spending $30 billion.

As Bob says: Smaller cars, bigger debts, Papa Washington.
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