Did You Know...

   

Introducing the Obama Suckers Mutual Fund

Share
By Michelle Malkin  •  April 9, 2009 07:01 AM

Yes, Virginia, the Obama administration is still living in fantasy land — and wants to rope you into it, too. Here’s a coffee-spurting headline for you this morning. Turn your head away from your computer screens upon reading:

U.S. Imagines the Bailout as an Investment Tool

Wait, wait. It gets better:

During World War I, Americans were exhorted to buy Liberty Bonds to help their soldiers on the front.

Now, it seems, they will be asked to come to the aid of their banks — with the added inducement of possibly making some money for themselves.

As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds.

The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars.

Seriously. They are still plying the line that our trillions of dollars’ worth of taxpayer “investments” are going to make money. And under the guise of democratizing the returns, they are trying to persuade Main Street “investors” who have been forced to invest in failing banks, other financial institutions, auto companies, and life insurers to “invest” again in trash.

Behold the Obama Suckers Mutual Fund:

The funds, the thinking goes, would buy troubled mortgage securities from banks, enabling the lenders to make the loans that are needed to rekindle the economy. Many of the loans that back these securities were made during the subprime era. If all goes well, the funds will eventually sell the investments at a profit.

But, as with any investment, there are risks. If, as some analysts suspect, the banks’ assets are worth even less than believed, the funds’ investors could suffer significant losses. Nonetheless, the administration and executives in the financial industry are pushing to establish the investment funds, in part to counter swelling hostility against the financial industry…

…Perhaps more important than the money would be the political bonus of having thousands or even millions of taxpayers — whose portfolios have nose-dived during the crisis and whose tax dollars are financing bank bailouts and stimulus packages — profit from the toxic asset plan.

FYI: No one else wants to buy up banks’ bad assets. Why should you?

Team Obama is trapped in the Land of Make Believe and they can’t get out.

Posted in: Subprime crisis