Governement Planning to Transfer All Bad Bank Debt to Taxpayers

[jeffrey]

The federal government, in what will be its most far-reaching attempt yet to contain the financial crisis, is poised to establish a program to let banks get rid of mortgage-related assets that have been hard to value and harder to trade.

Leaders from the House and the Senate were briefed on Thursday evening by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke.

"The root cause of distress in capital markets is the real estate correction and what's going on in terms of the price declines in real estate," Paulson said at a press briefing after the meeting. "So we're coming together to work for an expeditious solution aimed right at the heart of this problem, which is illiquid assets on financial institutions' balance sheets..."

Government planning a new bailout - Sep. 18, 2008

[genchan]

All those people accusing Barack Obama of being a socialist, what the hell do you call this? It's even worse. Socialism for corporations only. They keep the profits when they make it, get bailed out when they don't. Sickening.