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26 Responses to “Did Taxpayers Really ‘Profit’ From Treasury Mortgage Program? – US Business News Blog – CNBC”
Well, it’s progress. Getting a bit better with every practice round. The article almost works, right up to the last line.
“the … market is left with fewer dollars and the Treasury with more”
That line destroys the awareness he was expanding for readers. Naive readers will think it very good that the Treasury “has more dollars!” Should have left it with “the private sector is left with fewer dollars.”
Or at least tried your line that “The Treasury never has nor doesn’t have dollars.”
The economics is interesting. As for the “liability” in the private sector, it seems that would be mainly a constant, the face value of the mortgages. It may have gone down over time if the homeowners were making payments. Or it may have gone down because some of them defaulted. These MBS were the “toxic” assets, right? That’s why Tsy bought them, and why the banks wanted to offload them. So, if the liability of the private sector stayed in the private sector and it went down, then the traders of the assets lost more than the $25B that the treasury “gained”, by the decrease in book value of the assets that were sold and repurchased.
Beyond the economics, there is the question of justice. Who is it, specifically, in the private sector, who lost that $25B (or whatever)? Is it not the banksters that created these monstrosities and sold them among themselves? Yes, perhaps the 99% lost $8 apiece of their economy, but is it not satisfying (albeit in a not so admirable way) that the 1% lost the entire $25B or more from their bonus payments?