THE BLOG

The Bailout: The Bond Billionaires Piggybacking The American Taxpayer For Another Gilded Ride

10/22/2008 05:12 am ET | Updated May 25, 2011
  • Raymond J. Learsy Author, 'Ruminations on the Distortion of Oil Prices and Crony Capitalism'

As the outlines of the "bailout" package come into focus, initially limiting the bailout to redeeming assets from American institutions, the fine hand of the influence peddlers are already all over the program. Hardly out the door, as the New York Times reported as of this writing (9/21/08):

"Even as talks got under way, there were signs of how very much in flux the plan remained. The administration suggested that it might adjust its proposal, initially restricted to purchasing assets from financial institutions based in the United States, to enable foreign firms with United States affiliates to make use of it as well." ($700 Billion Is Sought For Wall Street Vast Bailout" NYT 09.21.08)

Now who might they be referring to when signaling out "foreign firms with United States affiliates," and who would likely benefit most? Could it be an organization that has already enriched itself on the backs of the Freddie Mac-Fannie Mae bailout and the American taxpayer to the tune of $1.7 to $1.8 billion? While others were sinking, they saw fit to crow about their bonanza in the press (FT.com) and on CNBC (Please see: CNBC's Fawning Coverage Helping Bond Billionaires Fleece Main Street 09.15.08, referring in part to the Wall Street Journal's insightful editorial "Bailout for Billionaires" -- WSJ.com). Could it be the all powerful bond trader, PIMCO, with deep contacts throughout Washington and to the press?? Who just happen to be an affiliate of a foreign firm, Allianz, the German Insurance giant?

Wouldn't it be refreshing if someone in our Congress asked a few hard questions?