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“…