"OMGWTF!! We gotta buy up all the s--t loans, right away" is - shall we say - failing to address the issue?
I've been working hard for days to get folks to understand this. At lot of people get a glazed look in their eyes when you mention derivatives because of the complicated nature of them.
This bailout plan - no matter what the size - is not going to free up liquidity in the market. The market institutions are not stupid and they don't trust anyone else's balance sheet. Therefore, they will continue to "hoard" their money.
It's a good thing that the commercial banks did this last week. Normally, commercial banks keep a total of around $2 billion on reserve each day to meet the nation's banking withdrawal's. Last Wednesday, there were $114.5 billion of withdrawals that took place.
The Dow is going to go hog-wild for a few days to a week. Then it will turn down. I'm forecasting (my opinion) that it will hit 8,600 and possibly get to 7,000.