Rich people invest in hedge funds, so I can understand why the Fed would feel the need to bail them out by making available to them, without any pre-conditions, $200 BILLION DOLLARS.
Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.
Ok, so there may be one condition: no use of off shore “vehicles to conduct the transactions.” You know, I’ll bet they can live with that to get access to HUNDREDS of BILLIONS of DOLLARS practically free from the Federal Reserve. That’s a deal I sure wouldn’t refuse. Boy, it sure does pay to be an industry that isn’t unionized.
Hell, why don’t all of us here at Booman Tribune pony up our life savings and form a hedge fund? Then we could go be a hog at the Fed’s trough, too. What do you say? Hell, ONE BILLION DOLLARS could go a long way, even if we do have to share it with a few hundred people.
