So here is an interesting question. Lets say this bailout falls apart and does not happen. As a result of doing nothing and these banks with troubled assets such as Wamu, Wachovia, etc. all fail. In that instance they are taken over by the FDIC right, which is the government isn’t it? So the end result is the government and that taxpayers will be on hook for the whole thing anyway? I guess the good thing about letting them fail is the government gets to take over the banks for nothing right? Instead of offering them a big dump of money and taking their bad assets and letting them continue to do business.

I guess I just talked myself into letting them fail. Pretty interesting as I thought something had to be done as far as a bailout.