So you wanna bailout the whole world?
Courtesy of Bloomberg a possible explanation of the 600points Dow swing that today blew up all the (sensible and justified) short positions in financials. Apparently, we are heading toward some pretty serious system-wide bailout.
“Schumer urged forming an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages and make them more affordable. His remarks indicate momentum is building for some wider plan after the Fed and Treasury’s takeovers of Fannie Mae, Freddie Mac and American International Group Inc. this month.”
“The Federal Reserve and the Treasury are realizing that we need a more comprehensive solution,” Schumer, a Democrat who chairs the congressional Joint Economic Committee, told reporters in Washington. “I’ve been talking to them about it.”
Fool the ones that didn’t stretch themselves to the limit by buying outrageously expensive houses taking advantage of cheap money “just because it ain’t right”. They gonna pay the bill for the smart guys now. Fool then, and fool now. You better load yourslef with debt and buy the biggest castle you find, next time. And then wait for the world to go bust. You’ll keep your castle, and the debt will be forfaited.
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