It’s a mystery, even to the Mystery Trader, looking at today’s global financial crisis and proposed bailout targets . . .
Why are some firms deemed to be worthy of saving and others are not?
Why AIG and not Lehman Brothers? Or Bear Stearns?
Why not help General Motors (GM), which did not cause the financial mess?
Why toss billions of dollars to the investment banking giants, which did, with their cesspool of toxic derivatives?
Why toss good money after bad to help GM, which created many of its own problems over the years and is, in reality, already bankrupt?
Why does anyone think that giving the government a piece of the company would solve the problems for GM and other automakers when the government, with little or no accountability, is probably the worst manager of all?
Why does anyone think begging for bailout dollars would end with GM and the other automakers?
Is GM worth a flyer with the price below $3 after trading above $90 a share a few years ago and above $40 a little over a year ago? Maybe gamble with a $4 GM December call at 50 cents or sell a put with the idea that the government may decide GM is too valuable to fall?
