The Bailout – The Obvious Questions.

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Todd Zywicki, from Volokh:

If it is so obvious that the mortgage-backed securities are undervalued because of the market stability that the taxpayers are going to make money in the end, why aren’t private investors steppeing forward to take advantage of the situation? This is what Warren Buffett is doing with Goldman, with reports being that Buffett is getting a great deal because he is remaining calm.

Why isn’t something like chapter 11 bankruptcy not a viable solution to this problem?