Just read between the lines in this report from Global Insight regarding the Bernanke-Paulson plan:
The "fire brigade" approach to dealing with the fallout from the extremely weak domestic economy is eroding general confidence in the U.S. financial system and has led to a pullback in foreign capital investment, just at a time when these critical inflows are needed to shore up severely depleted capital positions...The Treasury will need to specify very soon how much capital that it intends to infuse into the two entities, but this capital infusion needs to be very significant—perhaps as much as $20 billion, or higher, for both entities—in order to defuse the speculative selling of GSE stocks that has been unleashed and reverse the negative psychology quickly and effectively.
Warren Dew of MA @ Oct 10, 2008 23:03:11 PM