[lbo-talk] Dean Baker on cost of TARP

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Mon Mar 28 08:33:02 PDT 2011


A lot of misunderstanding about Buffett's quip about twice the return with half the investment in GS; Buffett's investment was real and an actual hit to his balanace sheet. TARP was no such thing.

I'll simply note that paying off the loans was a top priority for these firms; they didn't feel like it was free at all.

I certainly agree that it's reckless to claim TARP was "free" ... but it is turning out to be a lot cheaper than was claimed at the time. And the Maiden Lane SPVs are looking like a trade Buffett would be envious of.

/jordan



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