Why You Should Treat Gubmint Claims of Bailout Profits With Extreme Skepticism

Because the government lies:

The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset Relief Program.

"In our view, this is a significant failure in their transparency," said Neil M. Barofsky, the inspector general, in an interview on Monday.

In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.

Treasury disputes the findings, etc.

FreedomWorks had a piece yesterday laying out other reasons to be skeptical of rosy TARP numbers. And Reason has been all over the TARP tall tales beat; start here, here, here, and here. Oh, and how did GM pay back its bailout so fast? It didn't!

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  • Robert Gibbs||

    the insurance company was extended $182 billion in taxpayer money...the taxpayers would lose $45 billion.

    We saved the American taxpayers $137 billion.

  • Chupacabra||

    At least it's not an evil corporation lying about its losses and lying to shareholders about it.

    Oh wait....it's worse.

  • ||

    That $40 billion is in the TARP lockbox, on the shelf next to the SS lockbox.

  • ||

    Why You Should Treat Gubmint Claims of Bailout Profits With Extreme Skepticism?

    Because the government lies.

    Say it ain't so, Joe Barack.

  • Barack||

    Go sit in the back, J.

  • ||

    We're libertarians. We don't even get a seat.

  • ||

    It ain't all that bad. In a close race we're allowed to tie ourselves to the luggage rack.

  • In Time of War||

    And yet, somehow, everything bad in the world is our fault...

  • ||

    We will sell black-market slurpees though.

    "Hey kid. Get ya brain freeze on."

  • ||

    Do not mock The Orange Lazarus!

  • Old Mexican||

    Because the government lies

    No! Say it ain't so!

  • ||

    They couldn't pay back the money because it was going toward paying the wages of those 700 billion jobs created by the stimulus. Duh!

  • ||

    So people must go to jail and pay massive fines for these accounting shenanigans, right?

  • ||

    By "go to jail and pay massive fines," you mean be promoted and be paid massive bonuses, right?

  • ||

    Right. I always get those words confused.

  • Old Mexican||

    In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.

    But it saved the economy from further ruin . . . did it not???

  • ||

    "But it saved the economy from further ruin . . . did it not???"

    It did not save us from further ruin. "Further ruin" is and has been the story ever since...

    Seen the unemployment rate lately? How are all those underwater loans treating the economy? Heard about any foreclosures lately?

    "Further ruin" has been the name of the game ever since!

  • Old Mexican||

    Re: Ken Shultz

    It did not save us from further ruin. "Further ruin" is and has been the story ever since.

    But I heard the Great Tlatoani say that he got the jalopy out of the ditch! That he buffed it and mended it! And other cutesy mechanical references that made my stomach churn, so it must be true!!!

  • ||

    OM, I don't know if you are familiar with iowahawk but you should like this piece. It is almost sick enough to be true.

    http://iowahawk.typepad.com/io.....urpee.html

  • Old Mexican||

    Pure gold. :)

  • Ernie the Bear||

    "Relax, all right? My old man is a television repairman, he's got this ultimate set of tools. I can fix it. " - President Spicoli

  • ||

    We won't know the true losses at GM and Chrysler until we're completely out of those "investments"--which is why we're not out of them already and I doubt will be out until Obama is either reelected or out of office in 2012.

    ...no matter what anyone says in the meantime--we're not out until it's politically feasible for Barack Obama.

    Oh, and not that Freddie and Fannie were part of TARP, but all the money those two squandered is all coming out of my paycheck too.

  • Jason||

    The only reason that GM and Chrysler are operating at a loss is because the Republicans are blocking the companies from raising prices on the wealthiest 2% of car buyers.

  • ||

    Welch,

    I thought the fucking New York Times lied to protect those anti-free market, Communist-Socialist-Fascist fucking liberals?

    Or does the fucking New York Times only lie when it fucking fails to fucking agree with your fucking opinions?

    Oh, and did I include enough fucking F-bombs in this fucking post to meet your fucking bloggingheads standards?

  • Montani Semper Liberi||

    I was hoping the level of our new MSNBC viewing trolls would be of higher quality. Way to disappoint, Mark.

  • ||

  • alan||

    Not so reality based when reality bites you on the ass are you?

  • ||

    Temper, temper, ladies - and alan.

  • Charlie Sheen||

    Yeah ladies, that shit is all on you. Everybody knows there are no conspiracy spouting nutbag, violent racist assholes in the Democratic party. That's all on you. Or, is it, you can only get away with those things if you are a Democrat? It doesn't matter, we rule, you drool! And if you are not a Democrat you are just a Republicunt. Fucking Nadarite Republicunts.

  • ||

    Satire is too subtle for you, eh?

    Who's hiring these lame trolls? JETS-O-O-O-O-N!

  • ||

    J Dub,

    I sorta liked your response. It showed some semblance of flair and panache.

    Chuckie merely displayed the F-Bomb Mentality on The Juice.

  • Spoonman.||

    Rock that keeps tigers away, etc.

  • T||

    Except in this case, the rock is failing to keep the tigers away so they want a bigger rock.

  • ¢||

    I was hoping the level of our new MSNBC viewing trolls would be of higher quality.

    I don't think the job they've been called in to do is skilled labor.

    Let's just postulate, for no reason at all, that we, the post-2008 rump H&R commentariat, have become a widely bemoaned embarrassment, because of the actually-sometimes-talking-like-libertarians-while-Obama-is-around and shit like that—and that what Reason wants is a respectably hive-minded fake-libertarian TEAM BLUE! commentariat like Balko's, like themselves, like everyone they link, like everyone they know in real life, and like they had until about 2008, not the odd mixture of cranky crackaz (and Old Mexican) that they've accidentally accumulated.

    How would they change that?

    ...
    Do you feel bored, by any chance?

  • alan||

    Who knew that new vitality they were getting with the MSNBC ads was comprised k-3rd grade librarians? So that's their demographic. Wow. Don't worry Nick. If that plan backfired, just send us the Bat Signal and we'll turn this motherfuckin' joint into 4chan.

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