Trillions have been paid or pledged to companies like AIG, Goldman Sachs and Morgan Stanley. In addition a dozen Domestic and Foreign Banks have also received the cash.
What did these companies do with the money? They paid the infamous, but unidentified holders of “CDOs” (Credit Default Obligations).
Who were these holders? Hedge Funds, those privately owned and managed funds who made fortunes off the sub-prime mortage crisis. See: https://mcauleysworld.wordpress.com/2009/03/22/obamas-toxic-asset-plan-who-benefits-the-hedge-funds-plan-to-be-announced-monday/
These Funds are the exclusive playground of the wealthy. Your Mutual Fund is not a Hedge Fund. Your Mutual Fund is not allowed to invest in your Hedge Fund. Hedge Funds are not regulated by The Government.
The Hedge Funds were the real beneficiaries of the Bailout Cash that hass been distributed thus far.
Now the Obama Administration has invited these very same Hedge Funds to particpate in the next Government Toxic Asset program.
The Hedge Funds have been invited to “repurchase” the toxic assets that the Government just paid them for.
Unbelievably, the Hedge Funds can repurchase these very same assets for 10 cents on the dollar. The Government bought them for 100 cents on the dollar but is reselling them for a dime.
That means a Hedge Fund can repurchase a Trillion Dollars of toxic assets for $100 Billion Dollars. (AIG received $180 Billion, after the Government “leverages” that money it can pruchase $1.8 Trillion in Toxic Assets).
IF YOU DON’T KNOW WHY THE PRESIDENT WAS SMILING THIS PAST WEEKEND – IT IS BECAUSE YOUR NOT A BENEFICIARY OF THE PROGRAM.