« Republicans and Blatant Racism | Main | If you Twitter »

September 18, 2008

Taxpayer Bailout Of Everything

-- by Dave Johnson

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.

Posted by Dave Johnson at September 18, 2008 12:50 PM


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.

Posted by: t [TypeKey Profile Page] at September 18, 2008 9:01 PM

Would Pres. Obama do something different? I'm dying to know!

Posted by: Jay Muntz [TypeKey Profile Page] at September 18, 2008 9:35 PM

Post a comment

Thanks for signing in, . Now you can comment. (sign out)

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Remember me?

Email this entry to:

Your email address:

Message (optional):

Return to main page