I'm trying to understand what the "bail out" would do. More to the point what's going to happen to all these "toxic" assets that the banks have.
I understand that the government is going to come along and buy the mortgage securities that the banks can't unload right now. It will keep them and then sell them when the market recovers. In all the talk about this plan or possible plans it's been pretty sketchy as to whom these assets will be sold back to. Finally tonight I found out that they'll be sold back to the banks.
So once the market is "better" has anyone given any thought what selling this mortgage securities back to the banks will do.
One of the things that bothers me in the rush to get something done (which is a tactic the Bush administration excels at; you the end is coming if you don't act now) is that down the road will be the response of what the hell did we do.
Wall Street hasn't come crashing to the ground. Maybe a couple more days of figuring out this mess is not such a bad thing especially if it leads to fewer headaches later.