depth first search

From the NYTimes:

“Some experts have suggested that a significant percentage of this compensation could come in year-end bonuses and that the size of the bonuses will be significantly enhanced as a result of the infusion of taxpayer funds,” Mr. Waxman wrote. “According to one analyst, ‘Had it not been for the government’s help in refinancing their debt, they may not have had the cash to pay bonuses.’”

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 of the few articles that treats “toxic” waste for what it is, not loans, but structured products and derivatives, most of which is not risky any more on account of it being worthless. The bailout is a handout. You want liquidity – capitalize new banks.