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US goverment creates hedge fund with tax payer money – market rallies

Posted by Adrian on March 23, 2009

So far the US tax payer has:

Bailed out the whole US banking system (tax payer funded bailouts)

Bailed out the car industry ( tax payer funded bailouts)

Propped up bonuses for AIG executives and help refurbish the offices for Citigroup (also US taxpayers bought Citigroup a private jet)

And now the US taxpayer will help fund a speculatively driven hedge fund created by the US Government, this tax payer funded hedge fund is so speculatively designed that it will need money constantly pumped into it via the Federal Reserve. Otherwise it will freeze up instantly as it will carry ALL the toxic junk (assets) that the US banking and yes other non US banks will offload onto it’s balance sheets.

So in other words this American taxpayer (who had no say in the creation of this fund) funded hedge fund will always run at a loss. It will never make money for the goverment or it’s forced investors (taxpayers), but it will be kept alive by Federal Reserve money printing operations.

But it will create money for Wall Street as Wall street will speculate from a distant via using Government and taxpayer money.


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