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The $1.7 Billion Payday: How Bill Gross Made a Killing on the Bailout

The real point that you make is that the same people that created and invested in the low quality debt have been provided an incentive to go out and try again.

The Treasury should have offered the debt holders 20 cents on the dollar along with diluting the shareholders 5 to 1. This was in no way a bailout of the shareholders, but a bailout of sophisticated debt investors that understood how to game the system. This includes the US Treasury who protected their own ability to access capital cheaply.