Bill Gross: Bailout Needs to Be $500 Billion Bigger

What, a $700 billion bailout not big enough for you, Wall Street? Apparently not. Bond guru Bill Gross told CNBC that the Paulson Plan "goes far but it doesn't go far enough in terms of recapitalization. The banking system and the investment banking system in total really require about $500 billion more. Where that comes from is still up in the air."

Who cares where it comes from? As former hedge fund manager Andy Kessler told me today via the Wall Street Journal, Hank Paulson is going to get such a good deal on all that bad mortgage debt, that Uncle Sam is going to make money hand over fist when it's eventually resold. Kessler thinks Trader Hank is going to turn $700 billion into $2.2 trillion. (Hey, that would pay for half of Al Gore's zero-carbon emissions plan!) See, America, the worse it gets for Wall Street, the better it is for Main Street. Not really...

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