This Should "Scare" You
I read over on Mish's blog that Paulson is considering buying Insurers.
The insurers are far more insolvent then the banks and have liabilities truly beyond comprehension.
The securitization of debt, without reserves, has essentially been an infinite money supply creator. There is no way that that all that debt can be cashed in for goods. The amount of money required to bail out the insurers is astonomical. I can't see the economy adjusting to this kind of move without incredible hardship to those that are already struggling.
And it is this kind of crap, incredible outright greed and risk, that's being bailed out. Poor traders, the trade went against them...