Posted by WARREN MOSLER on March 25th, 2009
This is what happens with a government that doesn’t know how the monetary system works and thinks it needs private capital participation:
by James Sterngold
Mar 24 (Bloomberg) — The U.S. governmentÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s plan to rid banks of toxic assets may attract investors with financing that helps generate returns as high as 25 percent. The Public-Private Investment Program would encourage the purchase from banks of certain securities backed by mortgages and other assets, as well as whole loans. Loans from the Federal Reserve and Federal Deposit Insurance Corp. debt guarantees will bring out the bidders.