The Fed bails out the Hedge Fund industry

One more day, one more bailout. After the $14 billion load to the auto-industry agreed by the Bush administration on Friday, the Fed announced that it will lend $200 billion to the hedge fund industry.

I am tired of commenting on these bailouts. It seems like everyday, the burden on the back of the united states citizen's children is increased by a few hundred billion dollar in order to save the statu-quo or the establishment - in the form of debt by the US government or assets on the balance sheet of the Fed.

This is the FT report:

Hedge funds gain access to $200bn Fed aid

Last updated: December 20 2008 05:01

Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.

The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.

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