YUP, BERNANKE WANTS WELFARE FOR THE BANKERS

According to the AP, the Chairman of the Federal Reserve wants tax payers to buy parts of the Bisg Shitpile at grossly inflated, non-market prices. So, what are we supposed to get from this action? Secretary Paulson doesn't want Americans to get an equity interest in the companies and waiting for a turn-around in prices seems like a losing proposition .

Paulson, Bernanke Describe Mechanics of Auction Proposal
By DAMIAN PALETTA and DEBORAH SOLOMON
SEPTEMBER 24, 2008
Wall Street Journal

Mr. Bernanke, early in the hearing, distinguished between what he called fire-sale prices -- which he defined as "the price a security would fetch today if sold quickly into an illiquid market" -- and a hold-to-maturity price, or the value of a loan if the borrower eventually pays it off.

"If the Treasury bids for and then buys assets at a price close to the hold-to-maturity price," he said, "there will be substantial benefits."