Subprime just got the ball rolling. The resulting credit crunch, and recent commercial paper (which is where money markets invest) interruption hasn’t helped. If Warren Buffet believes that Paulson’s TARP will prevent a meltdown and subsequent bank run, I say go for it. After all, anyone who has turned a 15 fold profit over the last 18 years must know more than other folks. If only I had a $135,000 to buy a share.
Granted, scrapping the entire banking system and replacing it would be a better solution, but I’ll take what I can get for now. Plus, if the Treasury values the toxic CDOs appropriately, taxpayers may eventually actually profit from the deal, similar to how the RTC did after the S&L crisis in the 80’s.
Yes, I like Wikipedia links.