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[wallyw]

who knows? but probably not. it is definitely not THE bottom according to the technicals. volume was up but it didn't approach the volume at either the january or march bottom. it didn't even beat the volume in june. as far as a one day correction goes, it is large enough to correct the 180 point decline from 1313. as far as the paulson/frank solution goes: the proposed solution now being discussed is to put all of the bad residential loans into a publicly(?)/government(?) owned entity to get the bad loans off the books of the banks. supposedly, this would stabilize the balance sheets and earnings of the banks and make it possible for them to resume lending. this proposal is not comparable to the rtc situation in the 80s/90s. the rtc got its loans for free by just paying off the depositors. however, one of the analysts asked: how will that reduce the excess inventory of homes on the market right now? answer: well, it won't. the next question was: how will that rebuild the savings of the average consumer? well, it won't. the next question: won't the banks have to take a big earnings/equity hit (create the need to raise more equity) to get all the bad loans off the books? well, yes. the next question: how will it keep the economy from slowing down? well, it won't. the next question: how will it support the dollar? well, it won't. some solution!!!