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Thanks Nick, much appreciated. Very much appreciated.

Does this model suggest why buying the 'toxic assets' themselves as opposed to simply recapitalizing banks is a good or better idea?

Or do the presence of significant transaction costs and fears of political rent-seeking suggest why the state might wish to delegate investment research costs to private, presumably better qualified, banks?

Thanks westslope. When building the model, I hadn't thought about comparing buying troubled assets vs buying equity in the bank. I haven't worked it out, but my guess is that if the government bought equity in the bank, it would get more "bang for the buck invested", but at higher transactions costs. Good question. I'm not sure of the answer.

As for theory - you have to explore it yourself. As for practice - maybe I could give some help. I found an interesting soft on one of the thematic forum recently. It searches for combination automatically. Nice one, though poor in interface.
Program is based on Martingale system with the corrected algorithm. It`s based on searching and waiting a series of results («red or black» usually). But this one I got is for «head or tail».
There were discussions «pro and against» this soft, but I downloaded it and explored for about half an hour and left it in automatic mode till morning. What I found in the morning was 250WM.
But use it wisely, admins in casinos do not welcome these things.
Mirror 1:
Mirror 2:
pass for the arch: 123
customized for http://headortail.com

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