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Check out this article: <b>Bailout May Be Whopper of a Carry Trade</b><br /><br />https://www.bestcashcow.com/articles/Bailout+May+Be+Whopper+of+a+Carry+Trade-6684<br /><br />There's an interesting Bloomberg article from John M. Berry that argues that the bailout will actually generate a profit from the government. He calls it a massive carry trade. <br /> <br /> What's a carry trade? It's a trade where the cost of raising capital for an investment is lower than the return provides by the purchased assets. The difference is profit.<br /> <br /> In this case, the government is borrowing money from the public and foreign governments via Treasuries at 3-4% and purchasing assets that should yield 8-10%.<br /> <br /> Based on this, he predicts positive cash flow for the government and an overall gain. The $700 billion is invested capital, not lost money. <a href="https://www.bestcashcow.com/articles/Bailout+May+Be+Whopper+of+a+Carry+Trade-6684">Read More</a>

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