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Reading the details I don't think it's as bad as it sounds. The government isn't just throwing money at the problem, it's more a plan where extra government assistance and expertise is applied to entice private companies to buy a lot of the bad loans as well.
Also, it's probably worth noting that the Government hasn't been just throwing money into the fire. There are a lot of equities and loans (granted, not good loans) representing assets that hold value for the taxpayer. It may be silly to think the taxpayer will actually see any of this money again, but on paper at least that's the way it looks assuming the economy recovers in a reasonable amount of time.
I guess the question will be, is it enough? Many experts think the issue isn't doing too much now, but rather knowing when to back off so we don't overshoot the target and really cause hyper inflation from all the extra currency.
-spence
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