A Barometer For The Current Bailout Plan - Federal Reserve To Lose Money On Bear Stearns Deal.

Bloomberg is reporting that the Federal Reserve may have up to $6 billion in unrealized losses in mortgage-backed securities taken onto its balance sheet as part of the Bear Stearns failure. That's a twenty percent haircut in a relatively short period of time. The majority of these assets are not subprime. In other words, we might see losses upwards of $350 billion or more on the $700 billion Wall Street bailout, if passed by the House tomorrow. And remember, the government seemingly plans to buy any assets as part of its bailout for above market value. So much for the lies of making a profit.

There is a way the government could protect the taxpayers and possibly even come close to break even. But, it isn't this ridiculous scheme.