In the News (from The Financial Times): “Obama’s bank plan could rob the taxpayer” A thinly veiled attempt to transfer up to hundreds of billions of dollars of US taxpayer funds to the commercial banks, by buying toxic assets from the banks at far above their market value … is dressed up as a market transaction but that is a fig-leaf, since the government will put in 90 per cent or more of the funds and the “price discovery” process is not genuine. It is no surprise that stock market capitalization of the banks has risen about 50 per cent from the lows of two weeks ago. Taxpayers are the losers, even as they stand on the sidelines cheering the rise of the stock market. It is their money fueling the rally, yet the banks are the beneficiaries.
My comment: People are being cheated – the banks are getting the profits, while the people are cheering at the fake numbers they’re given, not understanding that they are being swindled.