Federal Government Profitable?
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Senior Member
Joined: Jun 2005
Posts: 2,805
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From: NEVADA
Federal Government Profitable?
Let's try to look at the glass as half full.Bank bailouts are turning out to be great business for the government. Unfortunately for taxpayers, other federal rescues will almost certainly wind up in the red.
http://www.freep.com/article/2010033...ernment-profit
Senior Member
Joined: Aug 1999
Posts: 1,506
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From: Bakersfield, CA, USA
Granted, they may have made some 'profit' for the taxpayers in the case of these banks.
But there are soooooo many potential issues with the government buying private companies low and selling high.
It is all too possible to have the government drive down certain companies or industries through regulation, harrassment, etc... Then they swoop in to 'save' the company and buy the peices at a low price. Then the gub'mint gives favorable treatment to the companies they have invested in, and sell them at a profit (or sells them back to the people they bought/took/extorted the shares from in the first place).
Unless you want to live in a Facist state, that is simply not a role for the government, IMO.
But there are soooooo many potential issues with the government buying private companies low and selling high.
It is all too possible to have the government drive down certain companies or industries through regulation, harrassment, etc... Then they swoop in to 'save' the company and buy the peices at a low price. Then the gub'mint gives favorable treatment to the companies they have invested in, and sell them at a profit (or sells them back to the people they bought/took/extorted the shares from in the first place).
Unless you want to live in a Facist state, that is simply not a role for the government, IMO.