Insurance is only viable when only a few have claims. The premiums pay organization costs, some are held in ready reserve , and the rest invested in ways seldom readily accessible.
But we have Dr. Bernanke leading this action. He is the expert as he did his thesis on the great depression and how to prevent it happening again. He told us last year the credit crisis was "contained".
Bernanke read about it. He didn't live it. If he lived it, he'd have a different view. http://www.shorpy.com/rural-mother-1936?size=_original
I'd debate with you on this. I think it's enough. Enough to hit the reset button with. I don't know the figures on the S&L crisis, but I think it was about this size. It's enough to get junk off the balance sheets and "reset" back to zero. Trust me, the treasury will buy anything it wants basically at dirt cheap prices. That'll be enough to start over. I will be selling all my clients out of equities if this bill doesn't get passed by Friday.
They are regulated to have reserves already available when you buy the policy, and if they don't, they rate your premiums appropriately to buy re-insurance.
So you'll blame Bernanke for the wreckless abandon all financial instiutions leveraged themselves in securities that declined in value? I don't think it's Uncle Ben that had the problem.
I doubt Warren will do anything but expect to be paid when he invests. He's not helping himself unless he has a stake, and that's always been his MO. Even if he has to buy the company just to force the company to pay his debt back, he'll do it. In fact he's done that another time in his history, too.