There has to be a psychiatric term for this, but for now lunacy will do:
U.S. to Invite The Wealthy To Invest in The Bailout
The government is seeking to resuscitate the nation’s crippled financial system by forging an alliance with the very outfits that most benefited from the bonanza preceding the collapse of the credit markets: hedge funds and private-equity firms.
Will this ponzi scheme be financed through more public debt? Oh yes, indeed it will:
The program, which could involve the government lending nearly $1 trillion to these investors, exceeds the size of every other federal effort to address the crisis so far.
Not worried enough yet, are you? Well, just take a look at this:
The initiative’s approach could be the model for future federal efforts to aid the credit markets, sources familiar with government planning said. Officials call this strategy a “public-private partnership,” but in essence the government is offering good deals to private investors to draw them into its rescue efforts.
One question: and this will reduce market volatility?
After the past bailouts, the Treasury is now thinking about lending nearly a trillion to hedge funds to set up a deal where they could see massive profits, but avoid any risk of massive loss. Privatizing profit, socializing risk, it would seem.
But don’t worry, America. President Obama assures us he “gets it.”
Oh, he “gets it” alright: it’s all about federalizing/socializing an entire society and culture.