Posted in Meltdown on March 21, 2009 |
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So all of these protestors arrived at an AIG guy’s house. Surprise, it’s nice. Really. Nicer than the average house. There is income inequality in America, it seems:
She marveled at AIG executive James Haas’ colonial house, which has stunning views of a golf course and the Long Island Sound. The Fairfield house is “another part of the world” from her life in nearby Bridgeport, which flirted with bankruptcy in the 1990s and still struggles with foreclosures and unemployment.
How dare we subsidize the AIG jerks with their fancy houses. What should we do instead? Subsidize other people’s more tasteful houses:
Another protester, Claire Jeffery, of Bloomfield, said she’s on the verge of foreclosure. She works as a housekeeper; her husband, a truck driver, can’t find work.
“I love my home,” she said. “I really want people to help us.”
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A far bigger scandal than any bonus payments – but also far more difficult to understand – is the latest scam to come out of Treasury:
The Treasury Department is expected to unveil early next week its long-delayed plan to buy as much as $1 trillion in troubled mortgages and related assets from financial institutions, according to people close to the talks.
Actually, this buries the lede; the big issue is that the government is almost, but not quite, buying $1 trillion of garbage. Rather, it is going to pay for almost all of the garbage, but give a investment management firms the upside. Move over, Goldman Sachs, PIMCO is the new girl in the government’s bed:
Although the details of the F.D.I.C. part were still being completed on Friday, it is expected that the government will provide the overwhelming bulk of the money — possibly more than 95 percent — through loans or direct investments of taxpayer money.
To entice private investors like hedge funds and private equity firms to take part, the F.D.I.C. will provide nonrecourse loans — that is, loans that are secured only by the value of the mortgage assets being bought — worth up to 85 percent of the value of a portfolio of troubled assets.
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