Okay, so I’ve been bailout obsessed. I used to work on Wall St. Well, midtown anyway. This will be the last bailout post for awhile. Some sensible analysis of the bailout. UPDATE: Deep thought — What if markets actually are functioning, and we just don’t like what they are saying?
Average Joes and Janes are not the holders of the other side of complicated, over-the-counter derivatives contracts. Rather, hedge funds are the main holders. The bailout will involve a transfer of wealth — from the American people to financial institutions engaging in reckless speculation — that will be the greatest in history. This is one [...]