From todays yahoo news...
Treasury Secretary Timothy Geithner announced an expansion of the Fed's program on Feb. 10, saying it also will include support for commercial mortgage-backed securities. The central bank said teams from Treasury and the Fed are now analyzing the right terms for the commercial real-estate component.
The recipients are secret.
Should Doug Shorenstein resign from the FED as he is in clear conflict of interest if the Fed supports the commercial real estate market?
This money will never be paid back. It is thrown down a black hole, and is part of the greatest transfer of wealth in history.
Even worse is the 38 bil given aig yesterday. tehy are likely paying off credit default contracts that are naked bets.
Say Cindy takes out a loan for 1k from h brown. H is not sure that cindy is good for it. so he buys a credit insurance contract from AIG and agress to pay them 50 bucks up front and 50 bucks a year for the life of the loan.
Thats ok.
but Phil berg, Matt Gonzalez, and the Chicken also take a policy on Cindy's loan. We are just making naked bets that Cindy is a deadbeat and will go BK.
Why should the people be paying billions to these vulture gamblers.