Bad bank + toxic debts = moral hazard x10

[Joanne98]

Wall Street 'Terminators' trading 'cash for trash' on the 'Lost' island

ARROYO GRANDE, Calif. (MarketWatch) -- BusinessWeek says Paulson/Bush & Co. wasted $350 billion in TARP money ... the Congressional Budget Office and GOP say Obama & Co. will waste another $800 billion on "non-stimulus" programs ... Nobel economist calls bad-bank plan "cash for trash" ...

Warning, you are entering a bizarre space-time continuum, an anomaly where Wall Street makes random quantum leaps between metaphoric realities, on a mysterious "Lost" island hunted by a "Terminator."

"When am I?" asks John Locke the new leader on "Lost." Not "where" in space, but "when" in time. Past? Present? Future? As he leaps back and forth in space and time: Locke boarded Oceanic Flight 815 in a wheelchair. After the crash he was walking. Later, fatally shot, he's resurrected. Then after being murdered in Los Angeles, we see him dead, in a casket, waiting transport back to the mysterious "Lost" island ... where he will ...

In the "Lost" television series we're transported into a parallel reality, a perfect metaphor for today's global economic meltdown, which is misunderstood and grossly mismanaged. From the start "Lost" was a prescient metaphor. It began as the bull market soared like Oceanic 815 high over the Pacific ... then suddenly ... it crashed.

Wall Street crashed ... on the "Lost Island ... of Manhattan," the former center of world banking. The collateral damage has been enormous: Freddie Mac, Fannie Mae, Lehman Brothers, Bear Stearns, global trade, Iceland, the GOP, more coming daily.

Today Wall Street remains truly "Lost," aimlessly drifting through space-time continuums at random moments as its clueless leaders make endless self-sabotaging decisions about financial "weapons of mass destruction" -- toxic debt, killer credit, lethal derivatives.

http://www.marketwatch.com/news/story/bad-bank--toxic-debts/story.aspx?guid=%7b657EF852-FFB1-4ABB-B385-BE44368FC119%7d&dist=msr_1&print=true&dist=printMidSection

All they have to do is NOT PAY the counter parties. It's like everybody who went to Las Vegas won. Now the bank is broke but instead of just saying "we can't pay you because to many people won" They are going to dump the bill on the taxpayer. We should have allowed the banks to go down. The this whole mess would have gotten sorted out in court.