Michael Gracie

Following up on the “insolvency” bit…

• Hank Paulson sidesteps questions on the issue. Let’s also note that “government-sponsored” does not mean government guaranteed, and obviously Mr. Paulson knows this.
• The doomsday scenario, noting the government is counting on the siblings to fix the housing problem. Raising those caps isn’t looking like such a bright idea, just months later.
• The Legg Mason Value Trust and its manager Bill Miller are feeling the pain. I feel a bit sorry for the fund owners - buying into drops is rarely a good idea.  What goes down can hit the ground - gravity rules us all.
• But everyone breath easy - as has been said time and time again, they’re “adequately capitalized“…