In a remarkable event that we will need to reflect on tomorrow, the Feds are going to remove bad investments from Banks Balance Sheets and take on the risk? Am I reading this correctly? That is tantamount to nationalisation of Banks.
More tomorrow.
Sept. 19 (Bloomberg) — U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution.
Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative, which may also insure money-market funds, is aimed at removing the devalued mortgage-linked assets at the root of the worst credit crisis since the Great Depression.
Bankwatch 
Wow. Where have you gone, Milton Friedman? The nation turns it’s broke-ass eyes to you.
Woo woo woo.
Although the details are still unclear, it looks rather more like the US taxpayer being forced to put up rather a lot of money, in order to buy lots of rubbish, which might or might not be sold at an eventual profit. Has anybody ever calculated whether the Resolution Trust Corporation has ended with a positive balance?