John Hussman of Hussman Funds noted the following below in an excellent, recent market commentary:
"The US Treasury's toxic assets plan, for instance, looks to 'leverage' public funds (with the FDIC providing the '6-to-1' leverage) in order to defend the bondholders of mismanaged financials who took excessive leverage. At the same time, the Treasury plans to limit the 'competitive bidding' to a few hand-picked 'managers' who will be encouraged to overpay thanks to put options granted at public expense...."
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