Socialism for the Rich

A letter from Treasury Secretary Hank Paulson to the President of the Federal Reserve Bank of New York, Timothy Geithner, states the following regarding the Bear Stearns bailout:

"The Federal Reserve Bank of New York ("FRBNY") has arranged a special credit facility with J.P. Morgan Chase Bank ("JPMCB") to assist with the acquisition of The Bear Stearns Companies. On behalf of the Department of the Treasury, I support this action as appropriate and in the government's interest, and acknowledge that if any loss arises out of the special facility extended by the FRBNY to JPMCB, the loss will be treated by the FRBNY as an expense that may reduce the net earnings transferred by the FRBNY to the Treasury general fund."

In other words, the U.S. Taxpayer is explicitly guaranteeing the J.P. Morgan purchase of Bear Stearns. If it works out, J.P. Morgan's top execs make millions, and if it doesn't, the taxpayer foots the bill.

This is stunning, and has to be illegal. Hopefully, some member of Congress has the guts to put these guys in jail where they belong.

Everyone needs to sign this petition now.