Now Obama wants to subsidize hedge funds?

"The New York TImes has just posted a story reporting that the Obama Administration and the Fed plan to subsidize hedge funds and private equity investors’ holdings of securitized assets. If so, they have gone bat screaming crazy, and the appropriate portfolio diversifiers are land in northern Idaho, gold coins, shotgun shells and bottled water. If I were paranoid, I would wonder whether the administration plans to seize the banks, use taxpayer money to segregate their bad assets, and sell the “good” bank to private equity players for a song, while the Federal Reserve subsidizes hedge funds who buy structured product. There is, after all, an opportunity to rearrange wealth in the United States on an unprecedented scale. There are lots of hungry Ivy League university endowments whose private equity investments vaporized during the past year, eager to claw back what they lost. And there are scores of bright professors hungry for consulting fees. It’s hard to believe that anyone could be so reckless and so crazy. But the NYT report is one of the strangest things I’ve read, ever, anytime."
Blog Asia times

Markets are going to love this!