Don Fishback

Roubini Ups Losses Estimate to 3T - Still Smaller Than the Rescue Packages

I didn't say it wasn't bad, I just said what it is -- that the amount of money being thrown at the problem is bigger than the problem itself. Whether that's good or bad as policy is unknown at this time.

I was just surprised that the magnitude of the problem as defined by even the most pessimistic guys out there is less than the amount of money being committed. The way the news cycle has been going, you'd think that the problem was so large that governments couldn't stem the losses. But this makes it seem that the solution is bigger than the problem. Let me know if I am missing something.

And just to repeat, this is not a policy issue. From a taxpayer's point of view, I think it sucks. But from a loss mitigation point of view, it seems as though governments, supported by their respective country's economies, can make up the worst-case losses.