GD II was caused by bankers making ass-ton huge bets on housing with other people's money. Bets with no downside, as they got paid at year end on paper profits. Heads they win, tails you lose.
THE GEITHNER SOLUTION: Let bankers make ass-ton huge bets on housing with other people's money.
Bets with no downside as the taxpayer will put up 85+% non-recourse style. Meaning heads they win tails you lose.
How this ends in non-crying is difficult to fathom. Even Krugman hates it.
This combined with last week's Bernanke-fest print-athon effectively ends the Obama administration.
Nice +500 though.
I've seen this movie before. . . like 18 times.
It's called Greater Fool.
Guess who the fool is?
