On Thu, 09 Oct 2008 14:41:18 -0500, Ignoramus19789
wrote:
snip
By the way, the real issue with banks is that they have negative
equity due to fall in values of the securities that they hold
(mortgages) and high leverage.

So they are insolvent, in more simple terms.

Lending to them would not address this as it would not increase their
equity.
snip
=====================
Two insolvent companies with financial exposure [GMAC and
Chrysler Finance] to combine and ask the FRB for a direct loan
[of tax payer money]?
-----------------
"GM, Chrysler in merger talks: source
Sat Oct 11, 2008 2:48am EDT
DETROIT/NEW YORK (Reuters) - General Motors has had talks with
smaller rival Chrysler LLC about a merger that would combine the
No. 1 and No. 3 American automakers at a time when both are
struggling to cut costs and shore up cash, according to a source
briefed on the matter.
snip
Finally, Barron's reported that GM was preparing to approach the
U.S. Federal Reserve about borrowing money from the central
bank's discount window because of the logjam in credit markets
that has shut it out of other kinds of borrowing.
snip
----------------------------
Are these two organizations more like vampires or zombies?
for the complete article click on
http://www.reuters.com/article/newsO...081011?sp=true

FWIW -- Anyone else notice how much Henry "Bazooka" Paulson looks
like [and sounds/acts like] Daddy Warbucks [Little Orphan Annie]?