The WSJ's David Reilly discusses the plan, "Ironically, by working with the ... Treasury ... to develop the plan, big banks are admitting things are bad and that their options aren't pleasant".
The plan is some "former" Goldman Sachs (GS) bankers attempt to have the public bail Wall Street out of its bad investment decisions. What does "The lack of buying signaled that the markets weren't working properly" mean? For whom? Do markets only work properly when Wall Street can sell any junk to the public? The Treasury's role "could be crucial is luring investors to buy debt issued by the rescue fund". In other words, Treasury wants big banks to overvalue assets put into the fund and have individual investors bail the banks out. Wonderful. Why does Treasury care if banks "dump mortgage-backed securities and other assets onto the market"? Individuals subject to margin calls do it daily. Will "former" GS bankers try to save them from margin calls?