Monday, March 30, 2009

PPIP Boy

TurboTax Tim Geithner is at it again with his latest rich banker bailout ploy, and the beauty of this one is that he doesn't really have to seek congressional approval for any funds. The reason for this is that he is relying on loans from institutions, namely the Treasury and the Fed, that congress has subcontracted it's authority to. Congress can, of course, call him on this, but I'm given to think that they'd rather lay back and go to sleep than to worry about anything so trifling as the solvency of the country that they're paid to keep on track.

Mish details the score and links to this informational video:

As Mish also points out, the bank may well have nothing to do with the purchases (although preliminary reports are that they're scheming for a way to get directly on this gravy train). It would work like this:
  • Let's say I paid $100,000 for a house and borrowed $70,000
  • A couple years later I have to pay back the $70,000, but my house is now only worth $30,000
  • I'm in a pickle until my Uncle Sam says that he'll finance someone to buy it off of me and the most they'll be out is 7%
  • I approach the bank that I owe the $70,000 to an insist that they bid up and purchase the house for $100,000
  • Wa-La, instead of the bank taking at least a $40,000 bath on the loan, they only lost $7,000, and maybe not even that if I've made some reassurance to them that they'll get some of that excess capital left over from the transaction.
Any old way it's a scam, plain and simple; courtesy of 'Bailout' Obama and his tax cheatin' toadie.

No comments: