RJ and Makay

Fortunately for U.S. taxpayers, government purchases of "toxic assets" as part of the $700 billion bailout program haven't been the totally disastrous investments most people feared. The U.S. Treasury's toxic asset funds, for example, have risen 27% since their 2009 inception.

The Treasury initially bought $5.2 billion worth of toxic assets (illiquid securities of troubled banks and other financial institutions) to help prop up the mortgage-backed securities market. As a result of about $300 million in equity distributions and successful private money management by BlackRock, Invesco, and others, that initial investment grew by $1.4 billion to about $6.3 billion as of the end of 2010.

A couple years ago, most Americans probably thought this day would never come. But it's just about here.

American International Group (AIG) confirmed yesterday that, on Friday, it would finally repay the massive bailout it received in 2008. It'll cover the debt via complete recapitalization involving the issue of 75 million warrants. The warrants will allow current shareholders to buy AIG common stock at $45 per share, a 23% discount from the $58.40 the stock closed at yesterday.