Bailout endgame: Reason it's pure genius!

Discussion in 'Economics' started by peilthetraveler, Sep 25, 2008.

  1. Bailout is perfect plan. This is how it works. Government spends 700 billion and takes 80% stakes in these companies they bailout. Most of the stocks they will get the equity in have already lost more than 90% of their value. so they stand to make a ton of money....for instance...

    Washington mutual (WM) is trading around 2 bucks per share. It used to be 40+ per share. So government bails them out and takes major stake. So they spend 700 billion on companies like this FNM, FRE, ect. When stock price goes back to 40 bucks(in case of WM), they sell at a 20 fold gain. So thier 700 billion debt is now worth 14 trillion in gains. We pay off our 9 trillion dollar deficeit and put 5 trillion in the bank. With 5 trillion we can easily pay for enough wars to conquer the middle east, china and anyone else we dont like.

    Pure genius.
  2. Government uses income from sale of stock to increase annual tax expenditures. The next year, that income doesn't repeat, so they hit the middle class for it. After all, they are committed to spending the higher budget! Millions of school-aged children are now depending on that money for free health care! The welfare roles have quintupled since selling that stock! What a windfall!

    Sounds like a brilliant plan befitting of Hussein, a tax-raising Democrap. Brilliant.
  3. pure genius.....a dump and pump.