Bailout bought holdings dropping like a rock

This is what happens when you buy assets for reasons other than getting a return on value.

The government mounted a vigorous defense Friday of its massive bank bailout, responding to an Associated Press analysis showing that stock in the program intended to eventually earn taxpayers a profit has lost almost one-third of its value _ nearly $8 billion _ in barely one month.

Shares in virtually every bank that received federal money have remained below the prices the government negotiated.

It's like monopoly money.

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doing the same thing over, expecting different results....

Why am I not surprised with no restructuring, no change in management, just propping up a failed business model as if there is nothing wrong.

Talk about propping things up!

This could be a little bit OT, but I was just wasting my time over at ALFRED (I'm a geek, I like numbers), where I discovered that NFORBRES has undergone a rather remarkable transformation. It's been mired in negative numbers since last December. At the beginning of November it was -$150. Today its +$250 billion. Talk about being whipsawed! That's a $400 billion swing happening almost instantaneously. Like the banks all of a sudden have excess money to lend? (we won't mention the TAF, or Maiden Lanes I or III. Shshsh, that's a secret). The monkeys have the key to the treasury and they're throwing stuff everywhere, hoping something will stick. I'd say this was inflationary, but the size of the move is huge. They're really try to prop this thing up...and failing miserably. Looks broken to me.


NFORBRES for those who don't know.

Hey man, we do numbers here.

I'll even add LaTex if people will use it.