[quote=DWCAP]I think this is the only bailout of this type we will see. We may get some more banks or big buisness bailouts, 50 billion here or there, but I dont think we will see anymore blank check bailouts.
Why you ask? Because, this one is a revolving bailout. If I read it right, they can never excede 700B at any one time. So they overpay for some POS MBS and then accept too little back. We all agree that is the only way this thing works. So they sell the MBS and are now under the 700B limit, so they sell more debt and keep the crap processor working. [/quote]
Yeah, I had forgotten that this is a $700 billion revolving line of credit.
How does that work in this bill anyway? If they start off with a $700 billion line of credit, buy some toxic sludge for $350 billion and then turn around and sell that same sludge for $100 billion, does this mean the line of credit is back to $700 billion or is it down to $450 billion?
