The banks/Illuminati/whatever will use Geithner's welfare to buy back the crap the Fed's welfare is buying from the banks

Right now, the Fed’s buying assets probably for about 20-60 cents on the dollar from the Banks (I'll play along and call them "the Banks" in this column, even though they're actually now all outright welfare institutions) like Citigroup (C), Bank of America (BAC) and Goldman Sachs (GS), Wells Fargo (WFC) and JP Morgan (JPM).

The Fed needs to get rid of those assets but since they’re overpaying even at 20-60 cents on the dollar, there’s nobody on the planet willing to buy the stuff right now. (if they weren’t overpaying for it at the levels they’re paying for it, then, by definition, there’d be a bid for those assets right now in the natural, free market). Thus, “there’s no market for this stuff right now.” Again, why would there be a market for this stuff if the only entity willing to buy this worthless junk at 20-60 cents on the dollar is the FED.

Moreover, since the Fed’s price for this stuff is, even overpaying, at a 40-80% markdown from where the banks still have the vast majority of this crap marked on their books, and since the Banks are still levered up 10x-20x, that means they’re still insolvent. So guess what – “there’s no market for this stuff right now”.

And guess what’s coming next –

The Treasury says they’re going to lend welfare dollars at artificially low rates to the Banks to buy this stuff back from the FED now. The Banks will likely pay the actual 5-10 cents on the dollar that this stuff is actually worth.

And in the end, if this plan works – the Banks keep the profits, and if the plan doesn’t work, the banks won’t pay back the welfare loans, so the losses are socialized anyway.

The upshot: The government uses welfare dollars to overpay for junk from the Banks, which then turn right around and borrow MORE welfare money so that they can underpay for that same junk, and if it all works out they keep the profits.

Want it to stop? Tell your reps. Tell 'em to make the FED and Treasury come clean. Tell us what's happening. Send them this article and ask them to explain in any way, shape or form how I am wrong. Be preemptive and join the fight. Write your local newspaper. Send them this article and ask them to ask your Congressperson to explain in writing how ANY of what I've written above is wrong

Here's hoping I am. Wrong about how the banks/Illuminati/whatever will use Geithner's welfare to buy back the crap the Fed's welfare is buying from the banks. We all know I'm not though.