so in the NYT example, what happens if the insitutions that are issued the bonds in exchange for equity continue to go about business as usual? Nothing changes, right? Except that now the US govt owns a piece of the shitty companies and the bonds eventually get sold to make their balance sheets look better at some future date? And if the companies do well, what is the likelihood that the taxpayers actually share in the good fortune of the company/govt (and I'm talking about the people who pay their taxes and their mortgages, not the people who cannot pay their ridiculous ARM's)
In that scenario, what's the end game for the govt? When do they disconnect themselves from the scenario? Why should we think that interjecting our inefficient govt into these companies will make them run any better/more efficiently? Or are we just turning the money over and letting the industry that got us into this mess keep running wild?