Saturday, September 20, 2008


I really don't get where the fantasies that the US Gov. could actually make money by buying up these crappy assets then reselling them. The only way this kind of bailout can work is if they're bought for highly inflated values, as all of the players made highly leveraged bets. A 50% haircut won't bail anyone out. This is just the liquidity problem fantasy. It just isn't what's going on here. People lost lots of money.