As I understand it, Bernanke was at pains to explain to Congress, that insolvency is not the sole issue. There is a crisis of confidence. So the plan is also a laxative for current retentive lending. What’s actually being discussed behind closed doors right now is anyone’s guess, but one would hope alternatives such as the above get a look in. However, I think the time bomb is ticking and the pressure is on for a quick fix. It doesn’t seem fair, or right, and never again, but it looks like it’s going to happen, and history will judge if our leaders deserve the confidence entrusted in them. No, I’m not going to say be careful who you vote for. There I just said, darn it!
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