anyone still following this stock, page-17

Herbert, I disagree. The USA financial system would fall like a house of cards if the bail-out does not happen. The reason this is necessary is there are financial institutions which hold these instruments called CDO's (collateralised debt obligations). Under the accounting rules, institutions have to record the current market value of their holdings. As there is no market for them as they are seen as toxic even though they include some AAA-rated mortgages. As there is no market they can not be valued. The Treasury would create a new company able to borrow up to $US700 billion to buy these CDO's. As the Fed would buy these way below market value if there was one there is a good chance they will make money out of this deal.

As for your price targets based on the Dow, I can not see how you came up with them. All I know is that if those targets are reached they market cap will be roughly equal to the amount of cash they have on hand, which would be totally absurd. Many economists and experts like Warren Buffet and Marc Faber are already calling sections of the market oversold. Warren Buffet has also recently taken positions in Goldman Sachs and General Electric.

There has been widespread panic and selling based on the assumption that these toxic CDO's would cause a financial system collapse. I also agree that this fear will probably lead the US into a recession if it is not already in one. I believe that once the bailout is passed confidence will slowly return over the course of the rest of the year.