Friday, September 19, 2008

The Bag Holders

The mystery all along throughout all of this is who would be missing the seat when the music stopped, who would be left holding the bag.

This is not a liquidity crisis. It's an insolvency crisis. People made bad loans, and other people made hugely leveraged bets on those loans, and still more people insured those bets.

And now the taxpayer gets the bill.