[KeelHaulin]

I think those numbers in loan dollars; are what the securities are valued at at maturity. The problem with this is that it is a projected number based on what the loans will yield in expected interest; which is many times more than the principal. When people default on loans the loss is not as much on the principal as it is on what the bank expects to yield on that loan.

The problem is that the home flippers have pumped the real estate market up to the point where the balloon was so over-inflated it did not just deflate; it exploded! The securities are dropping in projected value because each week more people walk away from their mortgages (they don't want to pay for something that is no longer worth what they took a loan for with a zero equity loan). So what these banks want is for the US Gov to "buy" the loss off of them so that their balance sheet stays in the black. The American people know a skunk when they smell one. While I think that something must be done (and if the donation of 700B would have worked I think it should have been done); I don't think American taxpayers should eat the loss.

I think the fed should buy the securities at a value that would assure us a profitable return based on the worst case value (I know this is somewhat unknown). OR; Wall Street should scrape up 50% of the money to spread the risk among investors and taxpayers.

It's almost comical the daily fluctuations of the DOW based on the results of whatever happened in DC that day. It's like the market is saying: "you betta give us the money sucka or we gonna pull the plug". How is it that IF this is such a crisis; the market has not already had it's big downturn? How and why is it "waiting" for us to decide it's fate? Something stinks; and IMHO it goes back to the Fannie/Freddie debacle, corrupt government (both parties), the election (as a distraction), an outgoing president (to sign-off on the 700B payout), and Paulson (who previously worked for Goldman Sachs). Conspiracy theory for a 700B heist?