As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds.Why did a huge shudder suddenly go up and down my spine? The only thing I can compare this one with is the Bush administration's idea to hire a public relations firm to sell the Iraqi people on how great everything will be if only they can learn to love Big Brother and his sidekick, Dick Cheney.
The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats.
How out of touch can an administration be?
The article continues:
The embrace of smaller investors underscores the concern in Washington and on Wall Street that Americans’ anger could imperil further efforts to stimulate the economy with vast amounts of government spending. Many Americans say they believe the bailout programs — and the potentially rich profits they could yield — will benefit only a golden few, including some of the institutions that helped push the economy to the brink.So, just like all that sub-prime mortgage debt was sliced and diced and sold off to any and every sucker they could find, the US government is going to start slicing and dicing and selling off its bailout debt? To "Main Street"?????????? Hey, that's where I live, and I'll tell you right now: ain't nobody on my block who's gonna fall for that one.
“This is an opportunity to forge an alliance between Main Street, Wall Street and K Street,” said Steven A. Baffico, an executive at BlackRock, referring to the Washington address of many lobbying firms. BlackRock, a giant money management firm, is playing a central role in the government’s efforts and is considering creating a bailout fund. “It’s giving the guy on Main Street an equal seat at the table next to the big guys,” he said.
Gee, I wonder if the Obama administration is going to hire the same P/R firm to sell this bright idea.