Look likes the Federal govt is riding in on the

[Islandman]

big white horse to save Wall Street from itself.

Wonder how many more failed banks the govt will own at the end of this.

[Me]

They will be letting the small ones like National City of Ohio fail. They figure there isn't much disruption and the banks that are well placed like wells fargo can easily take market share in the profitable areas.

[Islandman]

I hope they offer the big banks less than 50c on the dollar for most of the bad assets which would force them to take the losses on thier books now, maybe then it might not work out so badly. It may get very expensive if they offer them more than that.

Should be interesting to see how they end up doing it and the political fallout from it. I don't know if the unregulated free market capitalism message is going to sell too well for a while.

[Me]

I don't see them paying that for any truly bad asset class, especially since Merrill sold their stuff at 22 cents on the dollar.