Earlier I quoted Fred Wilson. Wilson is A VC I respect and admire. He’s taken to calling the proposed bailout “The Splurge” (a locution I may adopt myself).
Today he humbly weighs in on To Splurge Or Not To Splurge.
Short version:
If this money is not coming back, then it’s an expenditure and we should not do it.
If the probability adjusted return on this investment is $1.5bn then we should do it in a nanosecond…
I’d send Paulson and Bernake to their cubicle and tell them to do the numbers and come back with the return projections before voting on this.