Yeah, tell me something I don’t know. It’s just a little disconcerting to me that the government is failing to get as good a deal as Warren Buffett when it comes to providing banks with capital. For example, on behalf of the taxpayers Treasury Secretary Paulson has invested $10 billion in Goldman Sachs in October, “twice as much as Buffett did the month before, yet gained warrants worth one-fourth as much as the billionaire, according to data compiled by Bloomberg.” Bloomberg says Paulson’s terms were repeated in many other transactions.
Well, in the end it doesn’t matter much anyways. All of these banks are going to be using this money to pay down debt instead of making new loans. It’s a messed-up situation.
Additionally, though I complain how the government is nearly giving money away through these investments, I think it’s pretty certain that the government will eventually come out ahead within a decade. Those who are complaining are simply focusing too much on the short term. In the long term, things usually always improve.
0 Response to “Paulson Gives Sweet Deals to Banks”