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.
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.
