Dan Walker

Options Trader: Friday Outlook - Too Little Too Late?

Phillip, wake up and smell the cow patties. Dodd himself described this bailout as a turd with a marshmellow in the middle. He just made sure the marshmellow was larger.

Of course the commercial paper market seized up. The biggest player in that market was Lehman. If you want to engineer a crisis to scare everyone into passing the biggest bailout in history, of course you want to first bail out FNM, FRE, and AIG and then let the principal CP dealer go bankrupt. It shuffles the pain down to main street to make them think that they should support this nonsense.

Will this be it? Oh hell no. The CDS issue has not even been mentioned, California is about to ask for a bailout, and GM will have given the $25B we gave them to the unions by next March. Bailout part !! coming to a news outlet near you by early next year (if it takes that long).