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A foreign investor bought insured AAA assets at say $100. They will now be selling them back to the US government for $30. How is that a bailout??

A: That "foreign investor" didn't buy that AAA asset from the US government. They bought it from a Private Enterprise (Co or Corp). And within the definition of the term "investor" is an inherit thing called RISK.
B: Just who do you think the US Government IS? And where do they get their money from? Hint; the US Government doesn't have any money. It's not a business and its purpose is not to 'make money'. We The People have the money that we 'give' to them to operate "The Government".

So, by the 'US Government' now buying that asset for $30 - with money that isn't theirs - they are definitely bailing out that foreign investor who SHOULD rightfully have lost everything.

When I bought some bone head stocks that went belly up 'The Government' wasn't at my door bailing me out for $.30 on the dollar -- or anything. I LOST everything on my "investment" in that stock. (Wanna buy a Gold Mine?)

And not that it apparently matters, but in my copy of the Constitution there's nothing about 'The Government' buying up foreign "investments" to maintain stability, or any reason. You can't even stretch the Commerce Clause that far.

You may be surprised but I actually agree with most of your points!! I would only add that we are talking about MARKET PANIC right now. If the government (yes, taxpayers) doesn’t do this right now we all crash. Remember the Great Depression? Good banks went down because everyone wanted to cash out at the same time. That is why FDIC insurance was developed. The only answer is to stop the panic. The upside it that the government (taxpayers) now own the collateral so there is a chance to recoup the payment!