To almost no one's surprise, the Oracle ofmanaged to strike a better deal for than the Treasury did. For half the investment Hank Paulson made, Buffett managed to garner 4 times the equity for his shareholders than the U.S. taxpayer received under the Treasury bailout.
"Paulson said he had to make it attractive to banks, which is code for 'I'm going to give money away,'" said Joseph Stiglitz, who won a Nobel Prize in 2001 for his work on the economic value of information.
"The worst aspect of this is that they were designed not to do what they were supposed to do," he said in a telephone interview from Paris Jan. 7. "In many ways, it's not only a giveaway, but a giveaway that was designed not to work."
As word of the disbursal of funds trickles out, we will no doubt see many instances of the government overpaying for toxic crap. With Obama warning that we should all get used to trillion dollar deficits, at what point does the well run dry?
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