How Obama and Geithner's Hedge Fund donors and pals will benefit from the toxic asset plans devised and approved by them

Barack Obama was a huge beneficiary of donations coming from operators of hedge funds (eclipsing Connecticut Senator Christopher Dodd’s record as the number one beneficiary of donations from those funds-many hedge funds are headquartered in his state and he chairs the Senate Banking Committee); see also Obama the Hedge Fund Candidate. Now that the rescue plan for banks has finally been released, it appears to be full of loopholes that will benefit those very same types of hedge funds. Taxpayer money flowing to donors-it is the Chicago way. This plan comes with an added kicker-enormous risks are being transferred to taxpayers while much of the gain will flow to hedge fund operators.  John Hinderaker of Power Line posts an example provided by a reader of one way sharp operators (the kind who helped get us in this mess) can use Geithner’s plans to shift the odds of making oodles of money in their favor.Business Week gives us more scenarios that will allow hedge...(Read Full Post)