istockAnalyst.com – Yet another story from the department of "I would not believe it unless I saw it with my own eyes" we continue down the path of unintended consequences and the ole run around. There must be some Puritan shame in admitting we are nationalizing our banks – we will do anything to prove otherwise.

Such as backstopping the returns of hedge funds so that our shadow banking system (which was large part of what us got us into this mess) revives. All we are doing is using a middle man with these type of solutions – instead of directly supporting the banks with infusions and backstops "the plan" is to use the hedge funds as middle man? So they can profit off US taxpayers and we can claim "hey it’s a free market!"

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Tags: backstops, banking system, banks, infusions, middle man, own eyes, shame, taxpayers, unintended consequences