The Geitner Plan

And the Left thought that Bush was vile. This scenario this guy lays out is so likely as to be unstoppable. And it would explain why the supposedly brilliant Geithner is acting so tongue-tied: he can't really talk about the fact that his plan is a complete bail-out not just of wall-street's corporations, but of its investors too. The only up-side is that many of those investors are pension funds. Mixed-feelings ahoy....



Oh, and when he says "The Fed", don't forget that he's not talking about the Treasury -- he's referring to the FDIC! These fuckers (Obama & co.) are going to save Wall Street's investors by wiping out the fund that's supposed to secure the bank accounts of every Mom & Pop in the USA (I say "supposed to" because reserves are effectively less than 1% of liabilities).

PS. If you want to see the plan fixed, edit the word "non-recourse loan" from it and make the money from the FDIC get repaid. Then you'll see all those eager participants run to the hills immediately, because that leverage simply will not be repaid. As it is, the "responsible" plan is just like taking out a loan from the bank to buy stocks with, with the only collateral the bank gets being the stock itself -- who wouldn't jump for that deal?