Nancy capitalists rejoice as the market front-runs the 'bad bank' plan.
Enquiring minds would like to know however:
Will it be price covering or price discovery?
Will it be a freebie or free markets?
If the latter, then the banks get blutarski'ed,that is, a common equity price of ZERO point ZERO.
If the former, the Fed becomes the baddest bank of all.
There are no easy solutions only least stupid ones : fearing the clearing will subject all of us to a 'markdown.'
Let's hope that Barry chooses wisely and administers pain as opposed to attempting to mask it.