Paulson's TARP=TRAP

9/26/08

Our national Treasury Chief Paulson's TARP ( Troubled Asset Relief Program ) has been viewed as TRAP to Americans since both parties are still working on the agreement. I personally reject this non-sense plan. Why post taxpayers in deep debt position to save their mistakes.
Speaking of bank failure, next victims list is following: WB, NCC, C,....etc. Although we have smooth transition of asset from WM to JPM. But it may still post risk on next huge national bank run soon.
Here I would like to point out that McDonald's 5 year Credit Default Swaps are trading around 25bps to 29bps. But US government is trading 30bps. This means McDonald's financial stability is safer than Uncle Sam. This is the fact, folks. Here you know what this mess bring us into...
Despite we have the rescue plan or not, Wall Street has already pretty much fallen, and it will never be the same again. So far, the failure lists are BSC, FNM, FRE, LEH, MER, AIG, WM. The list is growing, folks. Yes, I am very extreme bearish.