The Treasury Department has announced a new plan to try and work the toxic assets out of the system by using taxpayer funds to lure back private investors.  This “Mary Poppins Economics” will have all the hedge funds singing…

 Just a spoonful full of sugar taxpayer-funded promises, helps the medicine toxic assets go doooown!!Just a spoonful full of sugar taxpayer-funded promises, helps the medicine toxic assets go doooown!!

I have to agree with Mish that the plan does not seem promising for taxpayers, only potential investors.  Hedge funds, pension funds and irresponsible asset managers who’ve failed over the last few years, can now buy assets with the help of the taxpayer.  This system is a direct subsidy/bribe/handout to woo private capital back into the market to buy toxic assets and get credit flowing again.

Maybe I am being cruel, but I believe this debt should be written down, even if it leads to painful job losses and even if we suffer as a nation.  We cannot keep piling on debt in order to maintain a socialist financial system with the facade of capitalism.

Allowing millionaires to buy assets with the backing of taxpayers seems to be a little too easy for the MIT geniuses that didn’t think housing would fall and thought anything decent should be rated AAA.

This program ensures the FIRE economy will continue and the mantra of too big to fail will continue to reign.  I hope I am wrong.

In his op-ed piece in the Journal, Geithner speaks about “borrowing too much”.  How does he square the fact that while sitting on the New York Fed, Geithner voted for all NINETEEN Fed actions lockstep with Greenspan starting December 9, 2003 through March 28, 2006? That includes four consecutive meetings of leaving the Fed Funds target rate at 1.00%  Proof is here.

Why does Greenspan take all the heat for not raising rates soon enough, yet Geithner gets none?

In any event, no matter what anyone says, the plan will be debated back and forth by politicians and those that benefit from government bailouts (big businesses, hedge funds, lobbyists, lawyers) will make big bucks.  Try and position yourself as best as possible with that in mind.  I wish you the best.

Mary Poppins Economics

Thank you, future taxpayers, for risking your tax dollars to lure me back into the game!

…in the most de-light-ful waaaaaay!

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One Response to “Mary Poppins Economics”

  1. JohnNo Gravatar on March 24th, 2009 7:22 am

    Very creative, nice use of the hyperlinks and pictures.

    The sheeple are unlikely to ever wake up.

    The Rockefellers, Fords and the rest accomplished their goals.

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