Doug Henwood wrote:
> Enrique Diaz-Alvarez wrote:
>
> >What I had in mind was Bank One merging with Goldman Sachs, say, then
> >the ball falling on red when GS has bet the house on black, thus
> >activating an FDIC bailout of the whole structure.
>
> We already effectively have that. The Fed thought it important to
> bail out Long-Term Capital Management, meaning that the safety net
> extends even to hedge funds.
>
> Doug
I agree. But the so far implicit guarantee to every two-bit financial ludopath will now be enshrined in law. An important step.
Enrique