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.
In the meantime, the guy who got tripped over by TurboTax can’t find anyone who wants to work for him.
I swear it must be kismet that I’m reading Goldberg’s Liberal Fascism right now: this harebrained proposal is straight out of the Corporatist playbook. Mussolini would be thrilled.
You call it lunacy; I’ll just call it stupidity.
I’m cleaning out my gardening cart. I’ll be able to go to the market carrying thousands if not millions of dollars to buy bread when the Obamites realize that they can simply print money just like Zimbabwe, Weimar and Mexico during the Revolution. Pancho Villa was very fond of doves and had them printed on the new and immediately worthless peso notes. Obama will probably have his possum motto printed on them next to the picture of Josephine Baker (with the bananas of course}.