Taxpayer Bailout Of Everything

There is a rumor that the government will step in and take over ALL the bad debt like it did after the Savings and Loan crisis and put the bill to the taxpayers. Stocks are up 450 on the rumor.
Stocks surge on report of entity for bad debt

Investors were cheered by the notion of a huge federal intervention like the establishment of RTC to acquire the real estate debt that has hobbled financial institutions and led to the intense volatility in the markets this week.
If there’s an RTC-like entity, “it’s going to take a lot of the bad debt off the balance sheets of these companies,” said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. That would alleviate many of the pressures causing the credit crisis, he said, and open up the credit markets again.

The way the S&L bailout worked was, the government took over all the assets of the failed S&Ls. If you were a big Republican campaign contributor you got to buy all the good stuff for pennies on the dollar. Taxpayers put up all the money for the bailout.

2 thoughts on “Taxpayer Bailout Of Everything

  1. Sign me up for a piece of that action. Where do I send my credit information?
    Wait, let me just order that new plasma TV first.

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