re: #486 Erik The Red

Your daily market updates are great 3wood thank you. But damn they are depressing atm.

Thank you for the kind words.

The thing you have to ask yourself about the “Bad Bank” option is this. OK, so let’s say the cost of doing that successfully is 2 trillion. What is the cost to the economy if we don’t do this, the economy continues to decline as the credit market is still semi-frozen, and then the banks then fail. 2 trillion or more? That’s the calculus being faced.

My guess is the gov’t with dither, dither, and dither some more, and after a bunch more bad news happens in the economy, will do the “Bad Bank” option.