Tuesday, September 23, 2008

The Fake Crisis Hilarious Update

Paulson eyes rescue plan backing

BBC Business Editor Robert Peston said the US Treasury Secretary's proposal to buy bad mortgage debts from banks represented "the mother of all bail-outs".

He said that during the hearing Fed chairman Mr Bernanke disclosed that the Treasury would attempt to buy these debts from banks at close to their "hold-to-maturity" value, not the market value.

"In practice, it means banks who sell their debts to the Treasury would receive cash equivalent to something like twice the value in their books of these poisonous assets," our correspondent said.

"In other words they would book a profit from selling to taxpayers.



You have to admire the sheer chutzpah necessary to make these kinds of deals in the light of day. I don't mean to be vulgar but it's rather as if a perfect stranger walked up to you on the street at noon one day and politely said, "I'm going to anally rape you without lube." And then smiled broadly so that you would know he was serious.