[koraz]

Your math logic is faulty. If I sell a stock to you for $100 I first have the $100. If I buy it back for $30, which is probably its true value now, I have a $30 stock plus $70 of your money. Not too bad.
*************

WOW!! You are way off base. The investor paid out $100 cash for the security. It is now worth $30. If they sell it to the Feds they will only get $30 - a $70 loss!! Did you ever take an accounting course!!

[SE Mom]

I’m keeping up with the various opinions and points of view, learning as I go.

Have you read the first draft of the legislation? Does it give you pause that Paulson will have power that cannot be checked by the judiciary, the president or the Congress?

Was this power granted during the S & L mess? Has it ever been granted to one person?

[babyboomer2]

This whole thing relies on the banks and institutions to be willing to take the loss from revalued paper. Some of them will hold the paper just like the fed until it recovers some additional value. If a market is made in this paper then a real value will be established. We can only hope that this doesn't start another round of future betting on the anticipated value.

[count-your-change]

Please read what I wrote as you’re simply restating it in different words.

[Jedidah]

I’ve read several of your posts, and you obviously know what you’re writing about.

Thank you for being a voice of reason on these boards.