I don't know whether folks are connecting the dots and watching the shells move back and forth, but in answer to one question, Paulson made clear that only regulated institutions would be eligible to sell toxic financial waste to the Paulson Ponzi Boanza. In other news over the weekend, purely coincidentally, GS and Morgan Stanly agreed to become regulated banks. I presume they have been accumulating toxic financial products to sell back, probably from distressed customers after they strong armed them.
These guys are like mobsters who are guaranteed no prosecution, no asset recovery, restitution for the cars they busted up in their heists, witness protection and a government job under a new identity all for advising the government on how to make being a mobster illegal.