The Geitner plan

I was listening to Gregory on Meet the press.

Using a generic Bond rate from 2006

• 3% CDO at $10,000= $300
  
• 5K from Treasury, 5K from Pico.
• Levered up 6X= $1800
• $10000 investment returns $1800 per year=18% ROI(of course you can just multiply the interest times the leverage.

Even if the bond only performs for only 5 years you break even.