Porter Stansberry in DailyWealth:

Does it make sense to save overleveraged homeowners at the expense of a huge swath of corporate America? Should we really invalidate centuries of law and tradition to save a bunch of deadbeat borrowers, who bought houses they couldn't afford and traded the equity in the homes for flat-screen TVs and GM SUVs? Should we really back most of the mortgages in the United States with the full faith and credit of the U.S. government?

I hope you can see diverting our entire supply of capital into the mortgage market isn't good economic policy, even if it's nearly nirvana for relatively sophisticated equity investors. Shorting lousy balance sheets has been a one-way bet for months because the mortgage market has become a giant black hole of credit. And thanks to Obama, that's very likely to continue for all of 2009 and probably 2010 as well.

While I don't enjoy making a profit at the expense of someone else's misery, it's better than not making any profits at all. It's better than going bankrupt.

So where should you look for opportunities to bet on the inevitable? First, read what I wrote on...

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Read the first installment of this analysis...

Read Jim Rogers' brilliant take on the bailouts...