Chris Martenson explains “What the latest bailout plan means”!
Now that the details are out, we can safely state that the US political and financial leadership has completely sold out the taxpayers and has done so in a manner that is startling, both in its recklessness and its brazenness.
The reckless part I will spell out in the details below.
The brazen part is in how this is being spun out, as if the entire plan were hatched in a hurried rush, at the last minute, after events forced the issue. This is the spin, but it is completely false.
Because many financial commentators, ranging from Roubini to Roach to Calculated Risk to myself, foresaw these events, we can be completely confident that these events were both anticipated and planned for long in advance. The only question left was how they were going to be ’sold’ to the public. What better way than in the midst of a “massive financial panic” that required urgent action?
And now that the details are out, the plan is even more insidious than I ever dreamed.
On Friday the news started to leak out that perhaps $500 billion was the, uh
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WASHINGTON (Reuters) – The U.S. Treasury will propose a $500 billion to $800 billion government program to take toxic mortgage-related assets off the books of U.S. financial firms, banking industry sources said on Friday.
The sources said the government would acquire residential and commercial mortgages and mortgage-backed securities under the proposal, which needs Congressional approval.
A Treasury spokeswoman declined to comment.
