Saturday, March 21, 2009
Bob Rubin to be bailed out by his favorite buttboy Tim Geithner
Using our money in a no win situation for the taxpayers. Resurrecting a plan so bad that even Henry Paulson wouldn't go through with it, the US Treasury intends to make whole the makers of bad loans and mortgages like JP Morgan and Citibank and subsidize hedge funds who might want to once again financially rape the general public.
James K Galbraith has his take on the plan at Firedoglake.
The plan to be announced next week involves three separate approaches. In one, the Federal Deposit Insurance Corporation will set up special-purpose investment partnerships and lend about 85 percent of the money that those partnerships will need to buy up troubled assets that banks want to sell.But you don't have to believe me, even Paul Krugman thinks this is so-o-o bad that he has two posts up today here and here, explaining much more coherently than I can why this is a dreadful plan. And why it has been a dreadful plan every time it has been brought up.
In the second, the Treasury will hire four or five investment management firms, matching the private money that each of the firms puts up on a dollar-for-dollar basis with government money.
In the third piece, the Treasury plans to expand lending through the Term Asset-Backed Securities Loan Facility, a joint venture with the Federal Reserve.
James K Galbraith has his take on the plan at Firedoglake.
Subscribe to Posts [Atom]
Post a Comment