Wall Street helped produce the global financial and economic crisis. Now, as the Obama administration prepares to unveil a revised bailout plan for the banking system, policy makers hope Wall Street can be part of the solution.
Administration officials said the plan, to be announced Tuesday, was likely to depend in part on the willingness of private investors other than banks like hedge funds, private equity funds and perhaps even insurance companies to buy the contaminating assets that wiped out the capital of many banks.
The officials say they are counting on the profit motive to create a market for those assets. The government would guarantee a floor value, officials say, as a way to overcome investors’ reluctance to buy them.
Details of the new plan, which were still being worked out during the weekend, are sketchy. And they are likely to remain so even after Treasury Secretary Timothy Geithner announces the plan on Tuesday. But the aim is to reduce the need for immediate U.S. government financing and relieve fears that taxpayers will pay excessive prices if the government takes over risky securities. The banks created those securities when credit and home prices were booming a few years ago.
Besides devising a way to bring private investors into the bank bailout, the Treasury plan is expected to inject more capital into some banks and to give many homeowners relief from immediate foreclosures.
The obvious dishonesty of our first Affirmative Action President disgusts me as much as his Legacy predecessor.
Bush started the scam of “Hedge Funds” who buy up our Treasury paper. These so called “Hedge Funds” are apparently in the Caribbean, richer than Saudi, and stupider than rocks. Now that the Chinese are fleeing Treasuries, these “Hedge Funds” are becoming an increasingly significant “creditor” of the US. They bought up last weeks Treasury auction which otherwise would have failed.
Now His Osomeness is going to have these so called “Hedge Funds” pay for our bailout. They have trillions sitting around to do it with.
Right.
Obviously, there are no “Hedge Funds”. Hedge Funds do not operate like that. They are usually rather small, undercapitalized entities that dodge in and out of the market, it is the only way they make a buck.
What these “Hedge Funds” are is the Treasury department’s own printing press. We are monitizing the debt. Obviously. The folks in the know are winking at each other, but are doing it because it is allows them to inflate our way out of our obligations to Social Security, Medicare, Pensions, as well as to billions of impoverished Chinese and Indian peasants who will starve to death so that our politicians can refrain from making program cuts and raising taxes.
This will produce hyperinflation, and will wipe out all savers, especially those dumb enough to hold Treasuries. Folks on fixed incomes are screwed.
All because our politicians are dumber than rocks, and more dishonest than Madoff. Elderly folks are going to fight each other in the ailes for cat food cans because that’s all a hyperinflated Social Security check buys.