Makes sense to me. The question that’s running around in my mind ( lots of room to run around there, alas) is, why bail out these bad boys at all? They fail, they fail. If I understand the bailout proponents’ argument, there’s plenty of money out there ready to resume refinancing the world economy, but it’s being held out of the game because of uncertainty over the soundness of banks. So let the banks go bust. Wouldn’t the toxic portfolios then be reset to zero, just as Obama is apparently planning, and wouldn’t new investors then come in to take over the banks, knowing they’d no longer had any liability for their stupid loans? It would wipe out existing shareholders, but I’ve never understood capital to care who owns it – the stuff just shifts. I’m sure I’m being simplistic but if the choice is between shareholders paying the price for their companies’ bone headed moves and me and my kids doing so, I say wave goodbye to the shareholders.