Friday, September 26, 2008

A lucid description and debate on the current banking crisis and proposed intervention

You may be burned out reading about the banking crisis and the prolonged efforts at agreeing on a "rescue" or "bailout" package (depending on your viewpoint). But this post and the comments at A VC blog do a great job of looking at the plan from an investor's viewpoint.

And that, after all, is what all we taxpayers will be if the package goes through. We will be the proud owners of hundreds of billions of dollars of lousy mortgages. If we pay little enough, it could be a good investment. If we pay too much, it'll cost us big time.