If you have "no place to go," come here!

Now how about tainted money?

Just saying.

Oh, The Big Shit Storm that Tim Geithner's golfing buddies engineered isn't going to kill a lot of people? Especially kids and old people? Just like tainted milk?

Why would you think that it wouldn't? Isn't that what "creative destruction" is all about?

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Submitted by jawbone on

About which Paul Krugman wrote on Sunday.

What I suspect is that policy makers — possibly without realizing it — are gearing up to attempt a bait-and-switch: a policy that looks like the cleanup of the savings and loans, but in practice amounts to making huge gifts to bank shareholders at taxpayer expense, disguised as “fair value” purchases of toxic assets.

Why go through these contortions? The answer seems to be that Washington remains deathly afraid of the N-word — nationalization. The truth is that Gothamgroup and its sister institutions are already wards of the state, utterly dependent on taxpayer support; but nobody wants to recognize that fact and implement the obvious solution: an explicit, though temporary, government takeover. Hence the popularity of the new voodoo, which claims, as I said, that elaborate financial rituals can reanimate dead banks.

Unfortunately, the price of this retreat into superstition may be high. I hope I’m wrong, but I suspect that taxpayers are about to get another raw deal — and that we’re about to get another financial rescue plan that fails to do the job. (My emphasis)

And Dems to deathly afraid of Repubs calling them "socialists" or some such thing--except when the socializing of loss is gifts to the uberwealthy. Well, some Repubs recognize this, but the leadership is into privatizing gain and socializeing loss for their base.

And Clusterstock posts that it seems the Bad Bank idea, renamed for PR purposes as the Aggregator Bank, is the big secret weapon Geithner could not discuss at his hearing. And Sheila Bair is all for it, as Krugman notes, even tho' she says there's no way to mark-to-market. But we can hope that what we pay will be less than what the assets area actually worth. Oh, my--and she seemed like the reality-based Wall Streeter!

Soon we'll own The Big Shit Pile--or part of it, since there isn't enough money in the world to buy up all the side bets, all the poorly rated crap.

Oh my. Tainted money....