Geithner’s bailout accomplishes four things:

1) Gives another $1T of taxpayer money to the banks.

2) Sets the highest possible “market value” for the securities. They are auctioned off, but the bidders get to spend taxpayer money instead of their own - how prudent are they going to be?

3) Provides political cover for Geithner - after all he didn’t choose the purchase price, the “free market” did. How can anyone blame him?

4) Banks can simply buy their own toxic assets back from themselves with the government putting up most of the money. Then they won’t be subject to bonus restrictions.

It used to be that the government stole a few tens of billions here and there for their rich friends, but at least they cared enough about what we thought to keep it out of the public eye or invent convincing lies. They actually worried a little bit about public outrage.

Today it’s just one trillion-dollar in-your-face theft after another, and they hold us in such contempt that they don’t even bother to invent lies that are halfway plausible. Can Geithner even talk about this with a straight face?

Banks can simply buy their own toxic assets back from themselves with the government putting up most of the money. Then they won’t be subject to bonus restrictions.

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• Pay for banks and broker-dealers will hit a record $140 Billion this year.
• The Fed and U.S. banks would suffer irreparable harm if details of the loan programs were made public, according to the central bank’s senior counsel, Yvonne Mizusawa.
• This market is long over due for a correction.
• A brilliant explanation of Goldman Sachs’ methods:

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