WSJ/Kessler: That $700 billion bailout will make money for taxpayers
Andy Kessler writes in today’s WSJ about the proposed $700 billion payout plan, the Paulson Plan:
You can slice the numbers a lot of different ways. My calculations, which assume 50% impairment on subprime loans, suggest it is possible, all in, for this portfolio to generate between $1 trillion and $2.2 trillion — the greatest trade ever. Every hedge-fund manager will be jealous. Mr. Buffett is buying a small piece of the trade via his Goldman Sachs investment.
This guy closes his article with this: “Over 10 years this could change the budget scenario in D.C., which can also strengthen the dollar. The next president gets a heck of a windfall. In the spirit of Secretary of State William Seward’s purchase of Alaska for $7 million in 1867, this week may be remembered as Paulson’s Folly.”
posted Sep 25, 2008, 6:31am by Rodolpho Carrasco
So far that plan is not panning out.
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I find it hard to believe that this bailout plan could bring profits to taxpayers, if its true why aren’t the triple figure investors putting in their own buck? After all they are investors right, but not at their risk.