Supposedly, the mortgages are just being held as collateral, but somehow I think the taxpayers are going to end up eating those puppies in the end.
Add the $800 billion to the $200 billion the Fed is willing to take in and we’re well on our way to a trillion dollar bailout. What the hell, we’re on pace to blow a couple trillion in Iraq, why not blow a couple trillion more to artificailly inflate housing prices?
The dollar’s down another percent or so and gold’s up again:
It looks like we’re going to go through a pretty nasty period of stagflation. When all is said and done, savers will be punished again (with the dollar collapse) and the speculators will blow another bubble (it looks like commodities this time). Good times.
At least we can take solace in the fact that that Scholes guy that the government appears to be listening to was the father of what got us into this mess in the first place (portfolio insurance):
