> It's looking like a lot of those initial estimates of
> the cost of the bailout were overdone.
It certainly could have gone the other way, but I think this kind of thing should shut Ron Paul up for a while. In fact, I'd like to see the Fed do more of this kind of work: how about a $50B "Maiden Lane Special" to cover the states until they can dig themselves out without resorting to the kind of fiscal violence that we're seeing in Ohio and Wisconsin? Cheap: way less than they helped AIG with and about the same as GM. The states aren't in trouble because of spending[*], they are in trouble because of revenue. They can work that out, but not with the muni market breathing down their necks.
Of course, that kind of thing would really fuel the states-rights paranoid. Which might be worth the cost of admission :-)
/jordan
[*] Which nobody said a peep about until sales and property taxes went through the floor ...