*Scratches Head*

In the 48 hours since my last post I have been very busy, and when not doing something else trying to figure out what the hell is going on.

My take on the bets that the government has made:

• Backstopping JPM's takeunder on Bear via Bear Stearns debt - I'm OK with it given the suddenness
• Taking over Fannie and Freddie - had to happen but scary. The concept of a GSE with execs making fat cash and large political contributions should now be universally viewed as a joke
• Not taking over Lehman - the right thing to do
• Taking over AIG - very gutsy. I think taxpayer end up making money on this deal but this is a very bad precedent
• Implicitly changing Fed Funds policy this week - smart move
• This resolution trust-like organization - I still don't understand the scope. his is a very big deal on its own and give the very stretched balance sheet of the U.S.
• Temporary ban on short selling of financials - arrrrrrrrrrrrgh. Worst idea ever

History will be the judge of the players in this ball of wax that is being created.