In the fast-moving blur that our financial sector has become,  I vaguely recall the argument that taxpayers (or Asian creditors) could someday turn a profit on the “distressed assets” they’ll be purchasing in a few week;

Still, I’m a bit skeptical. I should note that I haven’t heard this claim in the political posturing that has passed for Congressional debate the last few days. (I wonder how many pols are willing to put their principled free-market stands through the risk of a real-world test. Very few, which is why we’re more likely to end up with a package that includes tax rebates for you and me.) But we may hear it again, so it’s worth dissecting, however briefly. If there is a profit to be made from these assets, why don’t the companies keep them or why doesn’t some enterprising private-sector investor snatch them up?

I’ll be waiting for the answer.

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