Let Risk-Taking Financial Institutions Fail!

[Veilex]

This is from Time Magazine in association with CNN:

"Do not be fooled. The $700 billion (ultimately $1 trillion or more) bailout is not predominantly for mortgages and homeowners. Instead, the bailout is for mortgage-backed securities. In fact, some versions of these instruments are imaginary derivatives. These claims overlap on the same types of mortgages. Many financial institutions wrote claims over the same mortgages, and these are the majority of claims that have "gone bad."

At this point, such claims have no bearing on the mortgage or housing crisis; they have bearing only on the holders of these securities themselves. These are ridiculously risky claims with little value for society."

It's nice to see not everyone in the media is parroting Bush's "We must have the bailout now!!!"
line.

http://www.time.com/time/business/article/0,8599,1845209,00.html

[whosinpower]

1. I agree

And given that those same holders have taken federal money and invested it in T-bills instead of using it to loan to its fellow bankers or mainstreet - makes one wonder who is holding the gun to the entire economic future of the globe.