Very interesting/thought provoking question. My thoughts on what would've happened: -Fed lends $ to Enron/Worldcom -$ is used to continue the ponzi schemes/keep the cos alive for another year or two -Same fraud happens, Fed loses 100% of $ and looks really dumb in the end https://t.co/BzdY4t4I87
By that logic we're currently at pt #2 in today's cycle ie, Fed is lending $ to companies that probably won't pay them back 100%, meaning the "looking dumb" part is still to come.