06 March 2009

Wealthy Invited to Own More of US?

Isn't that what this bit of news amounts to?
The U.S. government plans to invite wealthy investors to invest in the bailout of the crippled financial system.... The investors would be invited to buy up recently issued, highly rated securities that finance consumer lending - without the risk of massive losses.... The idea is to entice the investors to put their huge cash piles to work to stimulate the financial system....

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.

Only the wealthy could afford to participate in this program. In fact, they're specifically targeted for it. Which rings, or should be ringing a whole bunch of alarm bells.

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