ABOUT THIS BANK PLAN - IT WON'T SAVE THE TRULY INSOLVENT BANKS!

" Quite a few people have been emailing me about my opinion on the bank bailout deal. I do not think Obama will go the Bush Route and favor Wall Street over Main Street. It is just not a wise move. Alas, I've been wrong before, but if I am wrong about Obama's politics, I still will not be wrong about bank finances. Exactly how well did all of the other bank (and insurer) bailout plans work? I don't recall any of them resulting in a sustained increase in banking shares. As a matter of fact, I observed just the opposite. I really like Obama (contrary to most finance folk), but the man (and his staff) can't work miracles. Mother Market will have her way one way or another. Let me walk you through an example of how expensive it is to save the banks (this is a continuation of Is JP Morgan Taking Realistic Marks on its WaMu Portfolio Purchase? Doubtful! which itself is a continuation of Re: JP Morgan, when I say insolvent, I really mean insolvent). "