Bailout management fee’s in the billions
Saturday 4th October, 2008Unless you have been marooned on an island or just don't get out much, like Charles Arthur or Dan Lyons :p, you will have heard about the affectionately named "trillion dollar" bailout now under-way. Oblivious to the intricacies of corporate finance, I thought the US Government would work out how to divy up the cash. But instead they're gonna use asset management firms via tender.
Now their fees run at around 1% of asset value. So, if you're giving out $700 Billion dollars, that's $7Billion in fees. That's right, there was a "B" in that "-illion". The US government will be tendering out the work so it won't be the full 1%. Well, heck, I'll offer a 90% discount right now but you gotta call me in the next 10 minutes... So, that's around, errr, $700 Million....sheesh.....But there are though some real patriots out there who are offering to do it for free which does give us some relief that not all species on Wall Street are of the "Shark" genus.
Now imagine what the congress coulda done with $700Billion for it's infrastructure programs, like those things unrelated to wars, like education, hospitals, carbon emissions, transport, community programs... Good thing George's time is up as prez, and can't run again. A trillion dollary war on "bad intel", a near trillion dollar bailout, I think George's platinum amex if it hasn't already melted, it's just about max'd out.
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