As I have repeatedly noted, this taxpayer bailout of mortgage speculators was a massive transfer of wealth to private, moneyed interests. Hank Paulson is lining his buddies' pockets with an INFINITE backstop of the massive Fannie/Freddie hedge fund and the Democrats don't say a peep.
From the OC Register:
September 8th, 2008, 8:42 pm · 21 Comments · posted by Jon Lansner/O.C.
Register columnist
A huge winner from the Fannie Mae/Freddie Mac federal takeover was Bill Gross’ mortgage-heavy Pimco Total Return Fund, which rose 1.3% in price on Monday. That’s a huge jump for any bond fund, and the Newport Beach money manager believes it was likely a record gain for the mutual fund.
That 1.3% gain, due in large part by anticipating the federal rescue, is not chump change. Assume that Total Return Fund held $129.6 billion — yes, BILLION, the latest figure on its fund fact sheet. So, Monday’s gain equaled a roughly $1.7 billion one-day profit.
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