Uncovering the Scam

``With the bailout, the primary dealers will unload their toxic assets in order to be strengthened so that they become the predators who buy up the smaller banks that the Federal Reserve/Treasury Department will let fail. I don’t think the plan is to unload these failed banks’ assets onto the taxpayer, but rather, to force the private sector to eat the bond and equity losses that come with bankruptcy and FDIC receivership. Such a plan would allow the re-constituted strong banks to acquire deposits and possibly minimize the burden on FDIC insurance. Moreover, the smaller banks that will be allowed to die do not propose systemic risk as there are probably few credit-default swaps traded around them. Your plain vanilla mutual funds and pension funds will take a hit, but that’s life.'' -- Very insightful points