Monday, October 13, 2008

Bizzarro Banking Comes To America

With a convoluted justification and supposed negative reaction, the U.S. government is set to buy preferred equity stakes in nine top financial institutions as part of its new comprehensive plan to tackle the credit crisis, according to people familiar with the situation, says WSJ.

The supposed justification for pumping money into nine top "healthy banks", according to WSJ: "The move is designed to remove any stigma that might come with a government investment."

Say what?

Billions to remove stigma? This is like giving Warren Buffett, Bill Gates and Donald Trump super sized welfare checks, so that the poor and down trodden don't feel a stigma cashing their own welfare checks.

Supposedly, some of the nine banks are not happy with the move but agreed under pressure from the government. Will see about that after the terms of the "investments" are announced.

And CNBC is reporting that "the U.S. government also plans to invest about $250 billion in possibly thousands of banks as part of a far-reaching effort to shore up the U.S. financial sector, and an announcement of the plans could come as soon as Tuesday>"

The understatement of the day comes from House of Representatives Majority Leader Steny Hoyer, this "was not the original proposal but clearly there seems to be a consensus that is essentially what is necessary."

And, as usual, interim assistant Secretary of Financial Stability Neel Kashkari spills the beans on what is really going on:

"As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions."

A bailout designed with attractive terms for HEALTHY institutons? WTF?


  1. These criminals are stealing as much as they can before they pass the baton to the next administration, if they pass the baton. Our congress is complicit in the largest heist ever in recorded history while the Bush Cabal begins moving troops back to the U.S. to control the coming dissent. Consolidate your holdings close to home. Prepare for major upheaval. Divest of this government and the large bank and investment centers. Their plans have been in the making since JFK was murdered and sealed with the demolition of the world trade towers.

  2. Thank God the "Protocols of Zion" were proven a myth, otherwise it might look a little funny....

    Protocol No. 21
    We shall replace the money markets by grandiose government credit institutions, the object of which will be to fix the price of industrial values in accordance with government views. These institutions will be in a position to fling upon the market five hundred millions of industrial paper in one day, or to buy up for the same amount. In this way all industrial undertakings will come into dependence upon us.