Is It a Bailout or One of the Best Invstments?

Much talk has taken place during the past week about the $700 Billion bailout but as I recently discussed, the government can and should make money. There is a reason why the smartest hedge fund managers and private equity professional have raised large pools of money. They expect the opportunity set for distressed assets to continue to grow and the returns over the next couple of years will far surpass those that have been garnered in the last five years.

Main Street must understand that finally they will be on the same team as the rich and famous that they read about. Mr. Paulson will get smart people to manage this $700 billion distressed fund and they will have a mandate to make the taxpayers a bunch of money. Congress needs to go back to their constituency and sell this plan not as a bailout but the best investment they will potentially ever make.

The excess leverage and the mortgage crisis have put the United States at the brink of bankruptcy but now we must deal with it and fix the problem. This new investment fund is just patching one leak in the dam but it is clearly the biggest hole.