The Baseline Scenario blog’s, guest writer Jennifer S. Taub has a great blog post distinguishing between a pre-funded Orderly Liquidation Fund and a post-funded Orderly Liquidation Fund– the latter being funded by us the tax payers. As with all major legislation the facts become twisted to convince, whoever is paying attention, that you are right and the other person is wrong. The facts are this–the Orderly Liquidation Fund is a way to systematically end a failed bank with out sending shock waves through the whole economic system. The Orderly Liquidation Fund is not a way to prop up a failed bank so it can continue to operate. And the Orderly Liquidation Fund can either be funded prior to the bank failing by the industry itself or it can be funded preceding the crisis (ah la–Bush bailout 2008, TARP) by the tax payers, who in return, will have to wait 5 plus years until they are paid back–if they ever are. Personally, I like the former not the latter. I am tired of a system privatizing profits and publicizing losses.