Wednesday, October 20, 2010

Bloomberg Headline Is BS

Man alive.

Bloomberg, a "financial press" outfit, runs this headline:

Wall Street Bailout Returns 8.2% Profit Beating Treasury Bonds.

Unmmmmhhhh....nope. Not true.

Second graf:

The government has earned $25.2 billion on its investment of $309 billion in banks and insurance companies, an 8.2 percent return over two years,...

Which is ~4.1% return, annualized.

Normal people speak of "annualized" returns when characterizing interest payments. Not the same for stocks; people include capgains and dividends when calculating "return" for those critters and often discuss the 'total returns' over a long period.

As to why the (D) Party can't seem to "get the message out"? Perhaps because they're lying when they use those terms.

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