Sunday, March 29, 2009
Toxic Asset Yard Sale
Ok let me get this straight:
1.) Government loans private investors money
2.) Private investors buy toxic assets
3.) IF the private investors can make money off of them, they share the gains with government
4.) If the private investors LOSE money off of them... taxpayer is out more money
The government says they need the hedge fund managers to buy these toxic assets, and then says they need to regulate and take over hedge fund managing, and already tried to tax bonuses they felt were "unfair" by 90%. I just don't think this whole carrot and stick plan of the government is working very well.
We need private companies to buy toxic assets (carrot).
Private company buys toxic assets and makes money, government calls them names, takes them over and taxes them to death (stick).
How many times will people fall for it before they just give up and collect our new socialist incentives (unemployment).