Last Laugh of the Financial Elites
Wall Street boomed yesterday, apparently driven by institutional investors who have been given the deal of their lifetimes by Treasury Secretary Geithner. Big investors will be able to buy toxic assets, created by the banks and AIG, with a 93% subsidy from the same American taxpayers who got #$%ed over in the first place - investors will get big gains if the assets recover, and suffer no losses if this whole thing continues to sink.
This plan has one primary objective, get the stock market going again. The Treasury Secretary has made it his job to rescue the stock market. Not the housing market, not the millions of people who are losing their homes, not main street, just Wall Street. This plan gives huge subsidies to investors to take the toxic assets off the books of the banks so that the bank stocks will go back up. It is very difficult to see how that trickles down to a small business loan or a new home mortgage. In fact it takes the same kind of creative gimmickry we once saw from these same bankers to imagine this latest two trillion dollars doing anything but giving a temporary bump to the stock markets.
Enjoy the bump boys, it cost us dearly.