Knowing that our political leaders are going to act - right or wrong, they're going to "do something" soon, I see that we have two options.They pass a plan that is a pure bailout with no upside potential for those of us footing the bill, which sends the message that if you're big enough and you screw the pooch through poor risk management, tax dollars will be there to save you.- OR -They pass a plan that is similar to the 1979 Chrysler bailout - with some upside for the investors (us). That plan worked, and when Chrysler did recover from its brush with bankruptcy, the taxpayers reaped the rewards. Iacocca wasn't happy about it and several accounts say he and Don Regan got into a pretty good pi**ing match about the government's sale of the Chrysler warrants in the deal, but in the end the investors (American taxpayers) reaped the rewards of the bailout.Given that our elected officials are about to sign a check with $700 BILLION of our money, I would just as soon have something - potentially - to show for it down the road rather than just handing the bad risk managers a gift.
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