The Troubled Asset Relief Program may be the single most loathed government program in history, Cramer said Tuesday. But it might turn out to be the most effective and profitable bailout of all.
U.S. taxpayers benefitted from a $12 billion profit after the government sold its stake in Citigroup's common stock, Cramer explained. The initial public offering of General Motors brought in another $13.5 billion, and the government still owns a sizable stake. It seems taxpayers could also break even, if not turn a profit, from the bailout of AIG , according to the Treasury Department. In the end, the Congressional Budget Office estimates the lifetime cost of TARP will come in at $25 billion.
"In my view that’s a small price to pay for preventing the Great Depression part two," Cramer said, adding that of the $389 billion dispersed through TARP, the Treasury has since received $264 billion in repayments and profits.
To better understand how the repayment process is working, Cramer spoke with Tim Massad, acting assistant secretary for financial stability at the Treasury Department. Watch the video to see the full interview.
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