NeMont
Long Time Member
- Messages
- 12,632
Can things be so out of focus. Last week the outrage was over the AIG bonus fiasco. This week Geithner and Pres. Obama are throwing a HUGE subsidy to hedge funds, pension funds and private equity firms.
While the President and congress was busy demonizing AIG executive, little Timmy Giethner was working on a plan to give another Trillion away to the banks with the Treasury acting as the broker for a put option on "toxic asset" or in the new vernacular "legacy loans".
So now the U.S. Government is the largest hedge fund investor in the world. I thought everyone believes that hedge fund managers and their compatriots are the reason we are in this mess to start with. How is giving the a $970 BILLION loan with no downside potential going to solve this? Yes the are expected to risk $30 Billion of their "own" money but these are no recourse loans that have no downside for the private investors and Tremendous upside potential profits for the hedge fund guys. Do any of you on here hope that your pension plan jumps in an buys up toxic assets?
Even Krugman thinks it is a bad deal for the taxpayers.
http://krugman.blogs.nytimes.com/
Nemont
While the President and congress was busy demonizing AIG executive, little Timmy Giethner was working on a plan to give another Trillion away to the banks with the Treasury acting as the broker for a put option on "toxic asset" or in the new vernacular "legacy loans".
So now the U.S. Government is the largest hedge fund investor in the world. I thought everyone believes that hedge fund managers and their compatriots are the reason we are in this mess to start with. How is giving the a $970 BILLION loan with no downside potential going to solve this? Yes the are expected to risk $30 Billion of their "own" money but these are no recourse loans that have no downside for the private investors and Tremendous upside potential profits for the hedge fund guys. Do any of you on here hope that your pension plan jumps in an buys up toxic assets?
Even Krugman thinks it is a bad deal for the taxpayers.
http://krugman.blogs.nytimes.com/
Nemont