Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.
All I can say is "Thank Goodness!" I run a
ponzi scheme hedge fund that has been hit hard by this insolvency liquidity crisis, and this $200bn lending program will allow me to have the US taxpayer act as the bottom layer of the pyramid scheme insurer of last resort for my investors.
It looks like the NY Times is finally starting to come around to the realization that Dumbya's desire to pander to minority groups helped trigger the worldwide financial crisis:
There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage-backed securities without regard to the risk.
But the story of how we got here is partly one of Mr. Bush’s own making, according to a review of his tenure that included interviews with dozens of current and former administration officials.
From his earliest days in office, Mr. Bush paired his belief that Americans do best when they own their own home with his conviction that markets do best when let alone.
He pushed hard to expand homeownership, especially among minorities, an initiative that dovetailed with his ambition to expand the Republican tent — and with the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.
It's a hard lesson that no one could have predicted: it turns out that a Mixtec-speaking strawberry picker is unlikely to pay back that $500,000 self-documented 30-year adjustable-rate mortgage with no money down and a two-year teaser rate. Live and learn, bitches.
Unless you want to scream at me for being a "racist", in which case you should save it for someone who cares.
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