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The plan is to have the "subprime mortgages, mortgage-backed securities and derivative instruments like collateralized debt obligations" the government purchases (with?) the $700 billion bailout money also be handled by private investment mangers.
My worst fears!  The first thing they will buy is the most toxic CDOs and derivatives from institutions slated to survive.  Even if they put a wrapper around them and stamp them AAA, who will want to take them?  They could blow throught $700 billion before the election and have nothing of real value to show for it.  What fools we mortals be.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Oct 7th, 2008 at 08:16:14 PM EST
<head explodes>

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Thu Oct 9th, 2008 at 10:42:53 AM EST
[ Parent ]
No. Madness implies incompetence and unawareness. The problem isn't that they're incompetent and blind. The problem is that they're corrupt and evil.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Oct 11th, 2008 at 01:02:47 PM EST
[ Parent ]

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