Firstly, it's not a bailout plan. It used to be, but now it's been rebranded as a rescue plan or somesuch.
I don't think it will work because, at last count, there was US$531 trillion over the counter derivatives outstanding, including, interest rate, credit, and equity derivatives. See the ISDA site for more info on these.
This is equivalent, roughly, to 10 years global GDP. It is 5 time more than when Buffet described these things as weapons of mass wealth destruction.
$700 billion, on the other hand, will cover just over 1 per cent of these things.
It's kind of like trying to put out a raging bushfire by urinating on it.
Hope that helps.
Good luck.
Moved from the "United States" forum. Original message number: 1088
