Excellent round up of the last two weeks from the FTs John Authers, now in specs. So things must be serious:
As for the preview of next week (since the blame game seems irrelevant now - heat of the last post notwithstanding) all will center on price: specifically, at what price will the new SuperBad federal entity (so much more entertaining than 'RTC') takes assets off troubled financials?
If it is at below balance sheet valuations - which are at best worthy guesses and at worst fiction - capital raising will still be required. Which defeats the purpose of a political intervention. Although it would be entirely in step with those misguided individuals who cling pathetically to the notion of caveat emptor.
What then remains, it would seem, is The List of which lucky firms get invited to the Big Table. Assuming Congress has been sufficiently cowed into bipartisan cooperation by the apocalyptic scenario related to them by Messers Bernanke and Paulson.