[Political Junkie Too]

Another would have the fedgov sell the shares in the market (depressing the price) in a controlled fashion - Like GM / AIG.

Those companies were already in ruins.

This proposal would kill the DOW. What would happen to healthy blue-chip companies that are relying on those stock values for their major capital projects?

These corporations would suddenly find themselves with under-water projects and no shareholder value to underpin them because of forced sell-offs at depressed prices.

The federal government will end up creating new GM's and AIG's overnight.

And who would buy back these stocks? Somebody has to be a buyer if the government is forcing 401(k) holders into selling. Would people be forced to sell their stock assets in 401(k)'s, only to buy them back at a lower price outside of a 401(k) structure?

This appears to be no different than when the Nazi's in 1930's Germany forced the Jews to sell their businesses at bargain prices or else face outright seizure.

-PJ

[Triple]

I agree with your points.

The Govt still owns AIG shares, I think.

[staytrue]

This appears to be no different than when the Nazi's in 1930's Germany forced the Jews to sell their businesses at bargain prices or else face outright seizure.

It also happened to the Jap-Americans in 1942. They were given 2 weeks to sell everything before going off to camp. Needless to say, the prices they got were less than optimal.