toxxum

Bailout or Savvy Investment?

"consist of them buying residential and commercial paper at a steep discount to its market value"?? How so? If banks sell at a steep discount, they will need to show the losses in their balance sheets and will have trouble meeting the capital requirements. So far, they could avoid doing so since there are currently no "market prices" that could be established, given that no one wants to buy the garbage. So, tell me, how could the Fed possibly buy at a discount, wihtout pushing the banks into bankruptcy?