Amerlafrance

Paulson/Bernanke: $700 Billion at 'Hold to Maturity' Pricing

Agreed, the hold to maturity price is artificial and they intend to create an artifical market that will allow banks to avoid writing down loans based on the "fire sale" prices. The assumption is that the market is not properly valuing the debts and likely recovery upon them and that the government experts will know better what they are worth. Of course, if the experts are wrong the taxpayer pays and the banks benefited by the purchase (including foreign banks!) do not repay a penny. This is a charade at best.

AIG: Hardly a 'Bailout', Absolutely Necessary

I agree with eternitus; this is a taking by the government; Chapter 11 could have deferred the short term capital needs and allowed a restructuring that allowed the shareholders to receive the value of the equity. The printing presses are being used to steal the shareholders' equity; whay a warrant with an oversecured loan (accoring to the fed guy) that is paying north of 11%. Why should the government be allowed to bypass the normal resolution for cash flow issues and extort value from the shareholders? I guess we can all now get discounted health insurance once Congress starts dictating the business that AIG will write in the future.