U.S. to buy into insurance companies now

Treasury Secretary Paulson in on a buying spree. With the bailouts of Fannie Mae, Freddie Mac, AIG, and the banking industry, the US government is now the world’s largest mortgage lender, insurance company, and bank holding company.

Not content with AIG, Paulson now wants to turn taxpayer money into ownership stakes in other insurance companies:

Paulson has shifted the government’s financial rescue program to focus on equity purchases after markets deteriorated faster than policy makers anticipated. The strategy offers a quicker way to deploy taxpayer funds, Neel Kashkari, the Treasury official running the bailout plan, told lawmakers yesterday.

Great. Just what we need: Over a trillion dollars gone already, and this government actually wants “a quicker way to deploy taxpayer funds.”

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