Friday, March 20, 2009

NY Times; The TALF subsidizes big investors returns

But some economists say the facility will provide subsidized returns to big investors while leaving taxpayers with a low rate of return and much of the risk of defaults.

The Times just missed the second part of the subsidy!

...hedge funds will be lining up to get the government largess at the TALF feeding trough. It will be tough to be bearish on stocks, when the Government is subsidizing your returns. And even the Government has made it clear to these hedge funds, that they will pay them to be bullish.

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