As you will know from our Opening Bell, the latest from the bailout boys is the concept that a series of mutual funds raised to buy toxic assets are the modern equivalent of patriotic "Liberty Bonds" or "War Bonds" of years past. Aside from being a rather nauseating bit of gamesmanship to compare bonds used to fight the Great War or World War II, we bristle at the suggestion that there is some patriotic duty to bail out the failed policies that fostered the illusory "American Dream of Home Ownership" for every citizen (no matter what the cost) and the fraud these perpetrated on the country. Is it not enough that we are already providing what are effectively failed institutions unbearably low cost capital while the likes of Berkshire Hathaway must wallow in high rates?
It is more than despicable that, now that the PPIP looks like it may be an abject failure even before bids have hit the screens, we should see the attempt to throw the problem onto the "dumb money" of the retail investor, without the leverage of the PPIP and while collecting fees, we might add. (As if same wasn't already going to bear the burden of several trillion in extra debt, and the taxes that will go to pay for it along with the vanity that imagines now is the perfect time to tax all energy and reform the health care system by socializing its costs). No doubt large mutual fund failures will tear of each other's ears trying to climb on top of each other to reach the brass ring of reset-high water marks by purging out units of the newest CDOs to the public.
If ever there were cause to invent the fanciful institution of the Vomitorium, this is it. You're welcome to your turn when we are though.
U.S. May Enlist Small Investors in Bank Bailout [The New York Times]
Posted by guest , Apr 09, 2009 10:51AM
silly, silly libertarians....
all your bases are belong to us.
Posted by lieutenant winslow , Apr 09, 2009 10:53AM
"You're welcome to your turn when we are though..."
see. the bailout really IS like a gang-rape
Posted by Anal_yst , Apr 09, 2009 11:05AM
The sad part is retail investors would be chomping at the bit to get a piece of a recovery fund, at least I'd be inclined to think so.
"Wait, I'm gonna get a chance to invest in the same stuff the big boys are? Finally some damn FAIRNESS for Main Street!"
Posted by guest , Apr 09, 2009 11:07AM
Well we can see that the training wheels of this administration are now off and they are riding their 2-wheelers w/o helmets and crossing guards. All those people who cried tears of joy as the innauguration ceremonies were conducted...payback is a bitch.
Posted by guest , Apr 09, 2009 11:07AM
Un-fucking-believable. It just keeps getting more ridiculous by the minute. Sell this shit to the retail investor, they take it in the ass everytime.
Posted by guest , Apr 09, 2009 11:07AM
These ARE like war bonds, only they're going to fund the Axis Powers.
Posted by redpandot , Apr 09, 2009 11:09AM
@6 I would laugh but I feel like crying.
Posted by guest , Apr 09, 2009 11:11AM
nothing is going to work. don't fight the fed? no, don't fight the free market. the sooner we realize that the better, but alas we have elected officials who know better. we're approaching desperation here.
Posted by guest , Apr 09, 2009 11:12AM
this is ridiculous...
Whose idea was this exactly?
Posted by guest , Apr 09, 2009 11:13AM
The average citizen gets raped by their mortgage brokers and realtors and lose his/her home. They're up to their eyes in debt with exorbitant credit card rates and upside down car loans. Then they get raped by their financial advisors who chase returns and thus earning mediocre returns, or by OppenheimerFunds who can run a conservative bond fund. Finally they capitulate at the market bottom, pull out into cash, and then get frustrated as the market takes off without them. They get taxed up the wazoo by the government and even when they die.
Probability they are clamoring to get raped again, this time by PPIP = 100%.
Posted by guest , Apr 09, 2009 11:17AM
holy shit. check out the rack (and low cut top) on margaret brennan. is she pregnant?
Posted by guest , Apr 09, 2009 12:04PM
@6. Nailed it. Everyone is spinning the "we're at war" metaphor. Problem: this is a civil war not a war against a foreign power.
Posted by guest , Apr 09, 2009 12:19PM
@ 2 -- yeah, any little guy going for this racket is getting "sloppy 32nds" and will be drenched in splooge
Posted by guest , Apr 09, 2009 12:20PM
We have met the enemy and they is us.
Stupid yanks.
Posted by guest , Apr 09, 2009 12:32PM
My understanding is that once a buyer (retail investor) purchases one of these "war bonds" they also get a free industrial sized bottle of Astroglide as well. So, the deal is really not all that bad.
Posted by guest , Apr 09, 2009 12:42PM
Like guns don' kill people, policies don't commit fraud.
Posted by guest , Apr 09, 2009 1:17PM
Ok, can someone explain to me in detail why this is such a bad idea? And please spare me the Obama bashing...
Is there nobody that thinks these assets might recover?
Is it a better idea for the US Govt to give banks a loan to buy these assets on the cheap then profit when they (shockingly) arnt as toxic as everyone thinks?
Posted by guest , Apr 09, 2009 1:19PM
forget the vomitorium -- how about a SPANKATORIUM ??
Posted by guest , Apr 09, 2009 3:29PM
What exactly would be the point of (re)creating a passage situated below or behind a tier of seats in an amphitheatre, through which crowds can "spew out" at the end of a performance?
Posted by guest , Apr 09, 2009 7:11PM
@6: That comment made my day!!!
Posted by Equity Private , Apr 09, 2009 7:34PM
@19:
Try reading to the end of the post:
"If ever there were cause to invent the _fanciful institution_ of the Vomitorium, this is it."
Posted by guest , Apr 10, 2009 7:40PM
@16
Policies do not commit fraud. Policies ignorant of rational incentives for agents to commit fraud by means of the policies do.
-RPB