Hedge Funds now getting bailed out

First it was insurance companies in the form of AIG. Now it's $200 Billion for hedge funds. When did the Federal Reserve's mandate go beyond banks?

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.

The asset-backed securities to be funded under the programme are pools of credit card receivables, automobile loans and student loans.

The idea is to increase the supply of these loans and reduce borrowing rates by ensuring that the companies that make the loans can sell them on to investors who have guaranteed access to low-cost funding from the Fed.

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foreign investment banks

I'm positive I read they already bailed out numerous foreign investment funds already.

Yes, I mean this is just outright theft for their friends as far as I'm concerned.

It's the investment class taking care of their own, gone wild. I keep having images of the French revolution in my head, as in what to do, it's so bad.

and frankly it sure looks to me like Obama is just more of the same. The people he's putting into place in his cabinet, in charge of the Fed.