The Performance Report Is In For Your Involuntary 401-K
I Don’t Know How To Break It to You But The Results Suck
You’ll be happy to know that $27 billion you had pickpocketed from you gave the government to invest has been put to work.
The only problem is: the government isn’t very good at this whole “generating a positive return” thing.
Despite assurances from the Treasury Department that your ex-money is being spent on “very high-quality institutions of all sizes,” the bank stocks the government invested in to earn an eventual profit for you are down 30% in the last month.
Neel Kashkari, the director of Treasury’s Office of Financial Stability (our nomination for Oxymoronic Department of the Year), insists he’s not worried.
“We’re not day traders, and we’re not looking for a return tomorrow,” said Kashkari — which is a good thing because the return tomorrow will probably be negative, too.
It’s not like all these bank stocks were purchased at the top of the market. Bank stocks had been decimated since the beginning of the year and the Treasury Department still managed to lose 30% in the last month.
How awesomely bad is the Government’s track record? Out of 53 warrants the Feds bought in October, they’re down money on 51 of them.
Amy Winehouse has a better record in rehab than that.
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A taxpayer explores a comparable investment…
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Photo credit: EveryStockPhoto.com
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