“Alice laughed. ‘There’s no use trying’, she said. ‘One can’t believe impossible things.’ ‘I daresay you haven’t had much practice’, said the Queen. ‘When i was your age, i always did it half an hour a day. Why sometimes, i’ve believed as many as six impossible things before breakfast.'”
1. Three of the largest investment banks on Wall Street no longer exist
2. The US government is now the world’s largest insurer (via its 80% ownership of AIG).
3. The US Treasury had to bolster the balance sheet of the Federal Reserve, the anchor of the world’s financial system
4. The US government is also the country’s largest provider of mortgages (via its ownership of Freddie Mac and Fannie Mae)
5. The cost of bailing out Wall Street is likely to exceed $1 trillion.
6. The interest rate on 3-month Treasury bills dropped to 0.02%.
7. And one more for good measure. The CDS market has begun to price in a lowering of the AAA credit rating of US government debt.