Treasury Prepares to Broaden Bailout Plan
November 8th, 2008In New Zealand, this would be called a, “Lolly Scramble.”
Via: Reuters:
The Treasury Department is preparing to open its $700 billion bailout package to companies outside the traditional banking sector, the Washington Post reported on Friday.
The initiative would make it easier for the Treasury Department to help a broader variety of firms if their troubles put the wider financial system at risk, the newspaper reported. However, the companies would still have to be financial firms that fall under federal regulators, it said, citing unnamed sources.
The plan, to be announced late next week at the earliest, could ultimately involve “hundreds of billions” of dollars in the $700 billion program, the Post said.
Companies best positioned to receive the government money may be those that resemble banks and engage in lending to businesses or consumers, the newspaper said. Treasury Department officials are evaluating which financial companies could become a bank or thrift holding company and remain viable in the long run, it said.
However, companies like GMAC, which finances auto purchases, could face difficulties because of a long-standing government rule that a commercial business cannot own more than 24.9 percent of a bank, the newspaper said. General Motors owns 49 percent of GMAC.
Speaking of New Zealand, since we’ve heard so much now about the new U.S. administration, what about the newly seated gov’t in Wellington? I see their new PM, a Mr. Key, was formerly an official at the New York Federal Reserve Bank and once ran the Singapore currency exchange office for Merrill Lynch.
http://en.wikipedia.org/wiki/John_Key
Everything I’ve read about New Zealand politically indicates that it too is owned lock, stock and barrel by the finance sector. (Don’t NZ’s “conservatives” like to blather on about how great some nonsense called “Rogersnomics” is, which is some kind of kiwi imitation of Ronald Reagan’s pro-Wall Street, de-regulation fanaticism?)
What is it about the Anglo world that makes them want to enserf themselves for the benefit of thieves in expensive suits?
“What is it about the Anglo world that makes them want to enserf themselves for the benefit of thieves in expensive suits?”
If you’re still not hip to the easy answer on this one, I would suggest a bit of self-study in the dark realm of social science known as “perception management”.
As for me, Kev’s reference to a “Lolly Scramble” conjured hilarious images of a giant red, white & blue pinata in the shape of Uncle Sam… =)