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View Full Version : What will prevent profitting from a bailout?




Brian4Liberty
09-30-2008, 12:12 AM
Not sure if this has been discussed anywhere, but if a trader knew that a bailout would pass, couldn't they buy up a lot of these "worthless" derivatives for pennies on the dollar, and then sell them to the Treasury for full price (dollar for dollar) as part of the bailout?

I wonder if they put in rules to prevent that? Or is it a dirty little secret that they were all planning on profitting from?

Brian4Liberty
09-30-2008, 10:26 AM
Did anyone read the full text of the Bill?

This may also be the root cause of the "seizure" in the market of these derivatives. Someone would buy them at a discount, but anyone still holding them refuses to sell, gambling on getting full value from the government in the bailout.