posted on Sep, 11 2008 @ 06:35 PM
Obviously an arms length or fair market sale of Lehman or its parts cannot be arranged. Fed or government guarantees will be given for those
assuming the risk of having to make good on credit default swaps that may have been sold (recklessly or in bad faith?). The credit default swaps
multiply the downside risk to the entire financial system. Because the press feigns ignorance, the public in general are unaware that the downside
risk is total not just hundreds of billions as the nominal number that is thrown around as the cost of the Freddie and Fannie debacle. The cost of
FMFM bailout was beyond the Feds capability hence Treasury had to pick it up.
No one (except uncle sam)is going to make good on credit default swaps; they were "innovative," and "creative," meaning fraudulent in nature. If
one is beyond impugning the elites, one could say they were reckless. What is your moral or ethical quality when you are reckless making commitments
in the billions of dollars? That is reason for the euphemism "moral hazard." To paraphase Jim Rogers no one is going to have to sell their
Maserati. The investment bankers are laughing all the way to the bank while John Q Taxpayer picks up the tab. The alternative is the greater
depression or $50,000 gold.