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Politics : Welcome to Slider's Dugout

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From: RonMerks	10/23/2007 5:34:48 PM
	Read Replies (4) of 50758

Question on SIV bailout? I think I caught someone on one of the business channels talking about this big bank consortium putting together the $100 Billion Dollar bailout package as potentially being a situation where the banks with tons of this crap on their books, form an investment pool and potentially- create an artifical 'market value' (inflated by their own bailout pool purchases at inflated prices) on these SIV's so they can then mark them (up) to the 'new' inflated market value- instead of having no bidders and much lower valuations assigned presently. It's like 4 market makers with Enron stock after they filed bankruptcy. If they have no bidders on Enron shares, then their holdings are worth zero. So they get this great idea to pool togher some money and then buy shares from each other- creating bids when there are no bids- and inflating the share prices, creating a false market value- when there is no market value- so they can mark up their books. Is there something fishy here, or am I misunderstanding it? Ron

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