Via Shaken, who writes “What’s that you say? Insuring your own debt with your own debt?“
The National League of Cities says it will ask the U.S. Treasury today for a $5 billion interest-free loan to capitalize a new municipal bond insurer it plans to create.
The Issuers Mutual Bond Assurance Co. would be the first publicly owned U.S. financial guarantor. The $5 billion capitalization would make it the biggest in the industry, eclipsing MBIA Inc.’s capital base of $3.8 billion and the $1.1 billion of current market leader Assured Guaranty Inc.
The scheme has received the Barney Frank Seal Of Approval. What could possibly go wrong?
Bernard Madoff must be envious of Obummer & Fwank, running the biggest ponzi scheme in history.
Obama: With this pen, I sign into law government seizure and control of all private capital and property of every subject of the Obama States of Afrimerica. Ooops, where did that pen go?
Frank: Oh, your highness Obamses, just bend over and pick up the pen…….and don’t move.
America’s rapid decline is getting uglier by the day.
It is all part of the master plan.
I can’t help but laugh at the idea of setting up an altruistic insurance company. It’ll be nothing but a charity for failed munis and crowd real insurance out.
The SBA Loan program is the same thing, they guarantee the loan then buy it via the Treasury in the securitization market.
So if the loan defaults the Government pays itself.
It also allows them to better traget lending into the sectors that the Government approves of, the new lending standards are being drafted for the SBA.
Good one ‘Doug’.
Looks like the Credit Card Legislation Passed, so prepare for the whining that will ensue as the issuers, who are the banks, pull all the marginal cardholders credit before it goes into effect.
The impact on credit will be higher initial rates for all borrowers. There is a initial rate reversion clause so iunitial rates will be higher to balance risk better.
This scheme will totally debase American currency.
Yeah, & a lot of people thought Madoff was the s**t too, up until late last year! How’d that work out for them?
there usually is alot of insightful comment here but this insure your own debt is just another version of pay your own debt by making it worthless by printing money.
birdy. somone better take the second amendment seriously soon or it will be too late.
The Obama Puppeteers are just looting the US treasury, savings and currency, and shuffling it off into their own pockets, via devious routes.
The US of A is being led to the financial slaughter block by people who hate America and love other peoples’ money.
Earlier, a month or so ago, the US treasurty announced it will buy US debt!!!
This is just craziness. But not so, if you actually just want to rape an economy and leave it for dead.
Bawny Fwank, now there’s a face I’d like to do a dump on!
Can’t stand him….