mbr

Profiting from the $700 Billion Bailout

Instead of funding the losses of incompetent or corrupt bankers why not let them go bankrupt? Creditor financial firms of a bankrupt financial firm would get repaid of what would be left after non-financial creditors have been repaid. Financial firms should know better than others where to put their funds. In the event non-financial creditors are not repaid for their full deposits after using all available guaranties, a federal fund would finance the difference through a long term loan. Surviving financial firms would also get help from this fund. The obese US financial system would be at long last trimmed to service, not itself, but the producers and the consumers. /Show more...

Profiting from the $700 Billion Bailout

The author forgets the counterparty risk in currency ETFs. Where are the ETF's funds deposited? In this situation I would look twice or more...