My take on the B of A buyout is that Hank is piling up all the ****
into one huge **** on B of A’s books so that when they go under it is
clearly too big to fail and can be handled in one fell swoop.
That’s from a comment at calculatedrisk.blogspot.com. That view is an outlier, but it’s always worth knowing the worst case scenario. At least it explains why B of A is interested in such a hasty deal with a losing business partner. Here is Paul Krugman’s column. Here is Felix Salmon on the unlucky Damien Hirst. Arnold Kling outlines the best case scenario, which is right now a better forecast than the worst case scenario. On another front, maybe Lehman bonuses will be clawed back.