Saturday, February 7, 2009

Geithner's kitchen sink plan: No loans, and subsidize Wall Street

It will be presented with different schematics, but that's the plan. Banks won't have to increase their lending. And Treasury, will subsidize Wall Street, who will buy some of the "toxic" waste from the banks, by guaranteeing a portion of the toxic assets they buy.

It is being done this way, so the banks don't have to sell these assets at the prices the marketplace says that they are worth. And Treasury wants private investors involved, because there isn't enough bailout money to backstop their sewage.

It's another variation of the "Don't Ask, Don't Sell" plan, but this time the twist is if you sell an asset, it has to be done in the shadows.

With a Government guarantee of course!

Now former Treasury Secretary Paulson screwed the taxpayer with TARP I, and "Paulson" became his own "verb" in the Urban Dictionary:

Paulson: Verb, transitive. To fiscally ass-rape the taxpaying public at the behest of your old investment banking pals.

And now on Monday, we will get Geithner's verbiage.

We already know what Tarp means:

"to borrow without returning"

So Monday, we'll get Timothy "Taxes Are Really Paid" Geithner's spin.

TARP II is just another taxpayer subsidy!

But this time it is to hedge funds!

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