We’ve taken Larry Kudlow, Abbey Cohen, and a few other self-aggrandizing liars to task in the past for trying to spin pretty much everything as extremely bullish, but that was before we’d heard from Barr Segal, a managing director at Los Angeles-based TCW Group Inc. On a 1 to 100 bozo scale, this guy is practically off-the-charts. When you read the quote below attributed to him, you’ll understand exactly why the firm that employs Segal has put him in charge of managing $80 billion in fixed assets.

Keep in mind that even though the Fed has thrown a trillion dollars at the “subprime mess” since August and cut rates by 3 percentage points, things have only gotten worse for the banking industry. In fact, since these desperate efforts began, the difference between what banks and the government pay to borrow money for three months has doubled to 1.92 percentage points. An RTC-type structure has been suggested by Pimco’s Bill Gross to help lenders push trillions of dollars worth of dubious mortgage paper onto taxpayers, and this plan would be just peachy as far as Barr Segal is concerned. Here’s the quote from him, and let’s hope he’s out of town when the torch mob comes calling:

“An RTC-type structure is interesting, and it may not be that much of a burden on taxpayers in the long run,'' said Segal. The government should purchase the mortgages and reissue “debt that's backed by the U.S. government -- and there you go, you've unclogged the drain.''

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Thursday, 27 March 2008 | Digg This Article