Heavy Lifting - thoughts and web finds by an economist
     I also contribute to Division of Labour Load HL's Front Page
Friday, March 06, 2009

Oh no - another awful idea

From this Reuters story:
WASHINGTON (Reuters) - The U.S. government plans to invite wealthy investors to invest in the bailout of the crippled financial system, The Washington Post reported on Friday.

The investors would be invited to buy up recently issued, highly rated securities that finance consumer lending -- without the risk of massive losses, the report said.
Guaranteeing returns without risk is not possible unless you have the power of the gun. The story suggests that up to $1 trillion would be "coaxed" out of the wealthy's pockets.

This is a bad idea no matter how pragmatic it sounds.

Prediction: Not enough of the wealthy's wealth is forthcoming in this scheme and the government decides that perhaps it needs to use a little more than coaxing - say seizure?

Labels:

Comments: Post a Comment



Purchase




Le Chai - galerie du vin



Support



Popularity

Posts that contain Craig Depken per day for the last 90 days.



Contacts

Heavy Lifting's Main Page
Email Me
Atom Feed

WWW
Heavy Lifting




Great Links

Money I Found Today

Heavy Lifting - Firehose style (56k warning)



Recent Posts

- Oh no - another awful idea




Archives


home


Visitors
Site Meter Blogroll Me!



Credits

Modified maystar design
powered by blogger