It is time to cease the argument regarding Socialism versus Capitalism and begin the movement towards peace and prosperity
Dr. Zhang then published this article supporting the government’s actions. He based his argument on his real life experiences, particularly from the previous decade when he was combating the financial crisis in Asia at the time. He learned from that earlier crisis that the capitalist free economy competition principle limited the government, resulting in disastrously heavy losses in the Japanese industry, which has yet to recover. In his article, Zhang warned that arguing about socialism versus capitalism was pointless, and heeded the public to aim for peace and prosperity so that they might not repeat the same mistake. His article received wide resonance.
The results of the bailout plan proved his point. In 2009, just one year after the bailout, all the major banks recorded historically high profits and paid the government back in advance. The government’s share received high returns on investment and helped reduce the financial deficit.
[The Wall Street Journal July 02, 2010] The Treasury sold a second tranche of Citigroup Inc. common stock, bringing the government’s profit from sales of the bank’s shares to more than $2 billion and reducing its ownership stake in the company to about 18%.
Treasury Secretary Timothy Geithner told a watchdog panel last week that banks have repaid about 75% of the bailout money they received. The government’s investment in banks have earned taxpayers $21 billion, he said.
[The Wall Street Journal December 06, 2010] U.S.'s Citi Profit: $12 Billion or 26.7% return
The U.S. Treasury Department said late Monday evening it had sold its remaining stake in Citigroup Inc. The department said the proceeds from Monday's offering should allow it to realize a profit of $12 billion on the $45 billion investment in the firm.
Although the original purpose of the article was to suggest an economic policy to combat the financial crisis, the article has been used to apply to the US presidential election!