Tim Geithner wins again. So-called progressives wrong again

Feb. 28 (Bloomberg) -- The Federal Reserve Bank of New York said it sold the remaining $6 billion of mortgage bonds in its Maiden Lane II LLC portfolio, which were assumed in the government rescue of American International Group Inc.

The New York Fed sold the securities to Credit Suisse Group AG, according to a statement posted on the district bank's website today. The New York Fed said that taxpayers earned $2.8 billion, including $580 million in interest, on their $19.5 billion loan to the Maiden Lane II vehicle, which was created in 2008 to buy holdings that AIG handed the Fed in exchange for a cash injection.
For those keeping score at home that comes out to just under 5% per year in returns. Here's Duncan Black in 2009
Maiden Lane
The losses are going to be much, much greater than already released numbers suggest.
And also in 2009 he wrote, with typical wry disgust "Nobody could have predicted" and quoted the Financial Times (my bold):
By any measure, the Fed is in the hole with all three SPVs. Its own estimates are that the amount by which the fair value of the net portfolio assets of each vehicle falls short of the outstanding balance of the loans extended to each of these vehicles (including accrued interest) is US$ 3.77 billion for Maiden Lane I, US$ 1.97 billion for Maiden Lane II and US$ 2.82 billion for Maiden Lane III. This is likely to be an underestimate of the true loss, because the reported fair value of the assets in the Maiden Lane vehicles is likely to overstate the present value of their held-to-maturity net cash flows
By GOLLY, nobody could have predicted that Geithner's "progressive" critics had no idea what they were talking about. 
Maiden Lane
Bailed out the banksters at par.
All though the near panic days of the first year of the Obama administration, Black and other "progressive" critics were not advocating democratization of the economy, not suggesting clever reforms, not providing illumination on the underlying cause of the crisis, but instead were furiously attacking the intelligence, character, and honesty of the Obama administration - and getting it all very wrong.

At least they've had the honesty to examine what was wrong with the analysis that caused them to shriek so much. Oh wait! Sorry about that.

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