FAUXBAMA'S MONEY MAN UNVEILS HIS "PLAN" TODAY
So at some point today, Timmy "The Bagman" Geithner will roll out the "details" of the latest plan to shift trillions of dollars to the world's wealthiest and most powerful. You and I and our descendants are so generous.
By the end of the day, all the "specifics" will be available to make fun of, and folks who know a lot more than I do will have opined. Most of them -- and likely all of them who aren't beholden to The Insiders -- will rip the plan to shreds. Nevertheless, it won't surprise me if the market goes up. After all, this plan is for the benefit of the largest institutions; I suspect they'll be very pleased.
Anyhow, it looks like the basics of the plan will be a combination of Treasury and FDIC donations, low-interest loans, and guarantees for any private actor reckless/greedy/connected enough to step in and buy the worthless garbage that our government brokers the sale of. The key flaw is that the banks that own the garbage assets stay in business and receive money in exchange for their balance sheet bullshit. The other flaw is that if the garbage assets ever end up being worth anything, they'll be in private hands to a significant degree.
Our money. Our loans. Our guarantees. The bank's benefit: cleaned up balance sheets. The private "purchaser's" benefit: no-risk investments, whereby they at a steep discount for assets that they will own if the value goes up. Our benefit: not sure that's part of the plan.
And, of course, two other things to remember:
One, if no private buyer opts to buy this garbage, the government will end up buying all of it. That's another bailout. Explain to me the difference between giving money to a cancer victim, and buying the cancer and putting it inside of your own body.
Two, the Federal Reserve ultimately backs up the maneuverings of the Treasury and the FDIC, so this is another step in the direction of the complete destruction of the dollar through currency debasement. The end game is becoming clear: unless Fauxbama hears the mob coming with pitchforks and turns into the Obama that the American people and the world want, the Insiders will loot every penny they can get their hands on, and it won't stop until there's nothing left. When either the Treasury is completely insolvent and/or the dollar is so debased, so essentially valueless, that it ceases to be the world's reserve currency.
Whatever specifics Timmy gives us today, remember this: unless his "plan" involves the U.S. government taking complete control of the banks -- kicking their officers, directors, shareholders, and 99% of their creditors to the curb in the process -- it's yet another step in The Looting. So long as the banks remain in private hands, every dollar we give them is just another bailout.
Don't let Timmy's fancy alphabet soup program titles and disembling semantics get in the way of the facts. Ownership is ownership and bailouts are bailouts. Today's plan will be one but not the other.
By the end of the day, all the "specifics" will be available to make fun of, and folks who know a lot more than I do will have opined. Most of them -- and likely all of them who aren't beholden to The Insiders -- will rip the plan to shreds. Nevertheless, it won't surprise me if the market goes up. After all, this plan is for the benefit of the largest institutions; I suspect they'll be very pleased.
Anyhow, it looks like the basics of the plan will be a combination of Treasury and FDIC donations, low-interest loans, and guarantees for any private actor reckless/greedy/connected enough to step in and buy the worthless garbage that our government brokers the sale of. The key flaw is that the banks that own the garbage assets stay in business and receive money in exchange for their balance sheet bullshit. The other flaw is that if the garbage assets ever end up being worth anything, they'll be in private hands to a significant degree.
Our money. Our loans. Our guarantees. The bank's benefit: cleaned up balance sheets. The private "purchaser's" benefit: no-risk investments, whereby they at a steep discount for assets that they will own if the value goes up. Our benefit: not sure that's part of the plan.
And, of course, two other things to remember:
One, if no private buyer opts to buy this garbage, the government will end up buying all of it. That's another bailout. Explain to me the difference between giving money to a cancer victim, and buying the cancer and putting it inside of your own body.
Two, the Federal Reserve ultimately backs up the maneuverings of the Treasury and the FDIC, so this is another step in the direction of the complete destruction of the dollar through currency debasement. The end game is becoming clear: unless Fauxbama hears the mob coming with pitchforks and turns into the Obama that the American people and the world want, the Insiders will loot every penny they can get their hands on, and it won't stop until there's nothing left. When either the Treasury is completely insolvent and/or the dollar is so debased, so essentially valueless, that it ceases to be the world's reserve currency.
Whatever specifics Timmy gives us today, remember this: unless his "plan" involves the U.S. government taking complete control of the banks -- kicking their officers, directors, shareholders, and 99% of their creditors to the curb in the process -- it's yet another step in The Looting. So long as the banks remain in private hands, every dollar we give them is just another bailout.
Don't let Timmy's fancy alphabet soup program titles and disembling semantics get in the way of the facts. Ownership is ownership and bailouts are bailouts. Today's plan will be one but not the other.
Labels: Also True That Theft Is Theft, Crooks, Insiders, Looters, Oligarchs
posted by Mike at 5:57 AM
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