Maybe off base here and any better explanation is certainly welcome
Do we really know for sure this will be limited to thrifts.
The definition of financial institution within the draft
http://banking.senate.gov/public/_files/LegislativeTextofChairmansDoddsproposalfortheTreasuryBailoutplanAYO08B68_xml.pdfany institution, including
any bank, savings association, credit union, security
broker or dealer, or insurance company, organized
2 and regulated under the laws of the United States
3 or any State, territory, or possession of the United
4 States, the District of Columbia, Commonwealth of
5 Puerto Rico, Commonwealth of Northern Marianas
6 Islands, Guam, American Samoa, or the United
7 States Virgin Islands, and having significant oper8
ations in the United States, but excluding any cen9
tral bank of, or institution owned by, a foreign gov10
ernment.¿
They are including broker dealers and insurance co's with "troubled assets"
"Any institution including"? sounds fairly broad?
Also, I think what many have a problem with is it enough over the longer term to really do the trick?
derivatives are going to be a huge problem
It would appear local and state governments may be holding toxic paper as well
see here>>>
http://www.weissgroupinc.com/bailout/Bailout-White-Paper-Sept-24-2008.pdf