Friday, Mar 06, 2009
Anyone got a spare trillion dollars?
Reuters: U.S. to invite wealthy to invest in bailout
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. The idea is to entice the investors to put their huge cash piles to work to stimulate the financial system, the Post said. The program, which could involve the government lending nearly $1 trillion to these investors, exceeds the size of every other federal effort to address the financial crisis so far, the newspaper said.
Posted by 51ck-6-51x @ 04:41 PM (768 views) Add Comment
11 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. timmy t said...
Couple of questions about this...
If the wealthy are investing their money then why does the government need to lend them the money to invest?
Where have I heard the term "highly rated securities" before?
Presumably the government needs to borrow this money, to lend it to the rich so they can lend it to the poor and make a few quid. Bearing in mind this whole problem is caused by excess debt and irresponsible lending I think this sounds like a brilliant solution and I can't believe they didn't think of it sooner - its been staring us in the face all this time.
2. 51ck-6-51x said...
timmy t -
"why does the government need to lend them the money to invest?"
Err, come again? The U.S. treasury are asking to borrow from the rich, not lending to them to borrow back from them. It suggests to me that China have slowed their debt purchases, but that the U.S. treasury still has an appetite to borrow.
But I think you are right on one thing - it ain't good!
3. timmy t said...
666 - so why does it say "The program, which could involve the government lending nearly $1 trillion to these investors..."?
4. enuii said...
Timmy; Strangely enough I read it that was as well!
5. troy said...
strong valid point timmy t ~~~ what's going on here?
6. troy said...
clicketyclick ~~~ whatzgoin on here?
my granddaughters and grandsons want to know!
can't blame them, looks like they'll be paying for it!
7. plato said...
This is what happened to the people who made the wealthy:-
http://www.dailymail.co.uk/news/worldnews/article-1159677/Pictured-The-credit-crunch-tent-city-returned-haunt-America.html
8. troy said...
plato ~~~ sadly, and I mean sadly, take a look around,
hpc is finished,
webmasters have given way to those who want free speech curtailed.
it was great while it lasted
but allowing authoritarian censorship by mouthy individuals was a big mistake
bye all I'm off
9. devo said...
"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.
The idea is to entice the investors to put their huge cash piles to work to stimulate the financial system, the Post said.
The program, which could involve the government lending nearly $1 trillion to these investors, exceeds the size of every other federal effort to address the financial crisis so far, the newspaper said.
The initiative adopts an approach that could be the model for future federal efforts to aid the credit markets, sources familiar with government planning were quoted as saying."
What a strange article! The largest federal effort so far, reported in a few vague lines? I suggest we follow this story closely.
Who are these investors? Do you know, 51ck?
10. crunchy said...
No one told us we were going to finance a giant Casino with rigged roulette wheels and an endless supply of chips.
It's nice to know we can all afford this but cannot afford a modest home.
Somethings fishy about these slippery chips.
11. troy said...
nice work crunchy, creative and meaningfull
hope it makes a lot more people ask awkward questions