I’ve just started reading the text of the bailout bill. I’m only a few pages in and I’ve found something that makes me very mad. See what you think:

Snipped from bailout bill

As I read this passage, it looks as though financial institutions in bankruptcy can sell mortgage backed derivatives to the government for more than they paid for them, presumably even though they can’t find a buyer anywhere else even at fire sale prices. Similarly, it looks like financial institutions that bought distressed institutions can strip out of them mortgage backed derivatives and sell them at inflated prices above what was paid originally, as well. The kicker is that they know, from the language of the bill, that this is "unjust enrichment", yet the "exceptions" they allow are the primary activities underlying the whole bill.

If I have read this correctly, it is just wrong and is a direct conduit of money from the taxpayers into the pockets of thieves.

Jim White

Jim White

Follow me on Twitter @JimWhiteGNV