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One thing that is continually missing from the debate is any true understanding of what all the “toxic” waste actually is. The Federal Reserve should release the books for Maiden Lane LLC so we can all find out. If you read pro-bailout pundits, you get a lot of napkin math that fundamentally misunderstands structured MBS. Samuelson assumes that if half the loans default, then the bonds lose half their value. Believe me when I tell you, if half the loans stop paying, the “toxic” waste is likely to be worthless.

Disagree? Happen to be the Fed Chairman? Prove me wrong. Release the books for Maiden Lane.

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