Game over for our Economy and the U.S. as we know it

[JS80]

There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

 

[nullzero]

Its hard to make a point across or concern for this major economic tidal wave coming when most will think you are a paranoid guy living in a bunker. Its a shame really... We have already experienced major economic disasters in the past... like the Great the Depression. If we were to have a repeat of the Great Depression today just think how much more intense and different it would be. No cell phones because you cant keep up with the payments, no T.V. or Computers because you cant pay for the electric bill. More rioting and violence because we are more crowded today then we were 80 years ago. The list goes on.

 

[JS80]

Originally posted by: nullzero

Originally posted by: Darwin333

Originally posted by: nullzero
I believe we are heading into the worst hyperinflation we have ever seen in a society. This 700 billion dollar bailout plan will just be the match that starts the fire.

Did you guys see Bush's face... it looked grim during the financial disaster speech. Imagine how bad it really is if the government is already admitting to a major economic disasater. Guys prepare for the worst... If this bill passes we are going into hyperinflation.

Once this bill passes, I gurantee people will start hoarding gold, guns, ammo, any hard asset they can run off with. China will soon then dump their massive T-Bill reserves. Japan and South Korea will soon follow afterword to get out before the door hits them. This dumping of T-Bills will further intensify the hyperinflation. Soon after this we can expect millions of people starving, rioting in the streets, and marshall law. If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

What in the world does China have to gain by further devaluing the currency of their biggest customer? It is in China's best interest for the US to have as much buying power as possible. Not that we are in a good position or anything, I just don't see China (nor Japan or S. Korea) shooting themselves in the foot anytime soon.

China already warned us it was going to dump if we didnt bail out Freddie and Fanny. There has been talk going around that China wants to start its own pan Asian currency like the Euro but for Asia. China has very little to loose if they dump and cut the relationship off with the U.S. they have enough domestic demand and many other countries that they could do business with. China can also dictate economic policy or social policy on the fly.

Don't fool yourself guys these countries are ready to dump at the twitch of a finger.

http://www.bloomberg.com/apps/...chive&sid=anZHfo6tQi60

lulz.

that would be the equivalent to threatening to cut off your best friend who owes you money. actually, it would be more like amputating all four limbs.

 

[nixium]

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

As I understand, the $700 billion is a LOAN, not free money. That being said, it's a loan no creditor in their right mind would make; however, isn't there a small chance that the govt (and we the taxpayers) can make the cash back?

It seems the tables have turned. Companies provided loans to people they shouldn't have and got burnt. Now we're providing loans to companies that aren't supposed to qualify. What goes around comes around, indeed.

 

[nullzero]

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

 

[nullzero]

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: Darwin333

Originally posted by: nullzero
I believe we are heading into the worst hyperinflation we have ever seen in a society. This 700 billion dollar bailout plan will just be the match that starts the fire.

Did you guys see Bush's face... it looked grim during the financial disaster speech. Imagine how bad it really is if the government is already admitting to a major economic disasater. Guys prepare for the worst... If this bill passes we are going into hyperinflation.

Once this bill passes, I gurantee people will start hoarding gold, guns, ammo, any hard asset they can run off with. China will soon then dump their massive T-Bill reserves. Japan and South Korea will soon follow afterword to get out before the door hits them. This dumping of T-Bills will further intensify the hyperinflation. Soon after this we can expect millions of people starving, rioting in the streets, and marshall law. If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

What in the world does China have to gain by further devaluing the currency of their biggest customer? It is in China's best interest for the US to have as much buying power as possible. Not that we are in a good position or anything, I just don't see China (nor Japan or S. Korea) shooting themselves in the foot anytime soon.

China already warned us it was going to dump if we didnt bail out Freddie and Fanny. There has been talk going around that China wants to start its own pan Asian currency like the Euro but for Asia. China has very little to loose if they dump and cut the relationship off with the U.S. they have enough domestic demand and many other countries that they could do business with. China can also dictate economic policy or social policy on the fly.

Don't fool yourself guys these countries are ready to dump at the twitch of a finger.

http://www.bloomberg.com/apps/...chive&sid=anZHfo6tQi60

lulz.

that would be the equivalent to threatening to cut off your best friend who owes you money. actually, it would be more like amputating all four limbs.

The chinese culture is very different from ours. To answer your question its not like amputating the limbs. Its more like beating up your friend taking whatever is left in his pockets and never talking to him again. If you dump the T-Bills now they still have some value to them. So liquidating everything now and hoarding natural resources will give you a sizable amount of value out of it.

 

[dmcowen674]

Originally posted by: nullzero

Soon after this we can expect millions of people starving, rioting in the streets, and marshall law.

If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

Have no fear...WEMA is prepeared.

Walmart has had a Soup/Bread line plan in place for quite some time now.

 

[nullzero]

Originally posted by: dmcowen674

Originally posted by: nullzero

Soon after this we can expect millions of people starving, rioting in the streets, and marshall law.

If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

Have no fear...WEMA is prepeared.

Walmart has had a Soup/Bread line plan in place for quite some time now.

I actually believe the government would implement it at soon to be vacant starbucks locations if it indeed got that bad.

 

[JS80]

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

 

[Kirby]

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

He doesn't need understanding. He has ammo!

 

[JS80]

Originally posted by: nullzero

The chinese culture is very different from ours. To answer your question its not like amputating the limbs. Its more like beating up your friend taking whatever is left in his pockets and never talking to him again. If you dump the T-Bills now they still have some value to them. So liquidating everything now and hoarding natural resources will give you a sizable amount of value out of it.

No, it's more like you're best friends with Chuck Liddell and he owes you money and you have one argument with him and you threaten him and Chuck says eff you we not friends anymore and you ain't getting your money back.

But if you want to debate chinese culture, they are tight wallet money under mattress 99 ranch shoppers they will not dump t-bills in the market devaluing the rest of their treasury portfolio, take a huge loss on it, and have the vultures come in and buy at discount price (or govt comes in and retires the debt for cents on the dollar).

 

[Fern]

Originally posted by: nixium

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

As I understand, the $700 billion is a LOAN, not free money. That being said, it's a loan no creditor in their right mind would make; however, isn't there a small chance that the govt (and we the taxpayers) can make the cash back?

It seems the tables have turned. Companies provided loans to people they shouldn't have and got burnt. Now we're providing loans to companies that aren't supposed to qualify. What goes around comes around, indeed.

How refreshing, someone who is aware of the facts :thumbsup:

Yeah, I'm hearing estimates ranging about $200 billion either way (we come out ahead by $200B, or lose $200B). I don't see any possiblility for a total loss of the whole $700B.

Fern

 

[nullzero]

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

From my understanding is the government is going to buy MBS and other assets from the banks. However its not clear at what price to be paid? I am sure its going to be above the real market price (if it wasnt then the bank would fail). Henry Paulson then says that we would hold on to them and sell them later on and may even make a profit off some of them. Yet there is no firm information on how much can be bought and sold again and again in a certain period of time. The only concrete thing I have heard is that we can buy up 700 billion in assets at one time.

Lets come up with a hypothetical situation...

Bank ABC needs to be rescued has 20 billion (market value) in Mortgage Backed Securities it needs to get ride of. Bank ABC needs 80 billion and says that the assets are worth 80 billion (what it was worth 4 years ago). Treasury then buys from bank ABC at 80 billion. 3 days later turns around and sells it back to bank ABC for 20 billion.

 

[DisgruntledVirus]

Originally posted by: nullzero

Originally posted by: Darwin333

Originally posted by: nullzero
I believe we are heading into the worst hyperinflation we have ever seen in a society. This 700 billion dollar bailout plan will just be the match that starts the fire.

Did you guys see Bush's face... it looked grim during the financial disaster speech. Imagine how bad it really is if the government is already admitting to a major economic disasater. Guys prepare for the worst... If this bill passes we are going into hyperinflation.

Once this bill passes, I gurantee people will start hoarding gold, guns, ammo, any hard asset they can run off with. China will soon then dump their massive T-Bill reserves. Japan and South Korea will soon follow afterword to get out before the door hits them. This dumping of T-Bills will further intensify the hyperinflation. Soon after this we can expect millions of people starving, rioting in the streets, and marshall law. If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

What in the world does China have to gain by further devaluing the currency of their biggest customer? It is in China's best interest for the US to have as much buying power as possible. Not that we are in a good position or anything, I just don't see China (nor Japan or S. Korea) shooting themselves in the foot anytime soon.

China already warned us it was going to dump if we didnt bail out Freddie and Fanny. There has been talk going around that China wants to start its own pan Asian currency like the Euro but for Asia. China has very little to loose if they dump and cut the relationship off with the U.S. they have enough domestic demand and many other countries that they could do business with. China can also dictate economic policy or social policy on the fly.

Don't fool yourself guys these countries are ready to dump at the twitch of a finger.

http://www.bloomberg.com/apps/...chive&sid=anZHfo6tQi60

You should learn to understand an article before you cite is as "evidence". Assuming you're not trolling I will help you to understand your own source.

``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23

Oh so China is in the same boat, and if they want to avoid a financial crisis of their own they have to help us. Guess that means no mass sell offs of T-Bills.

``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided.''

Key part is in bold for you. A Chinese company is saying "hey if T-Bills get dumped that's a bad thing for all economies, and we need to avoid it at all costs"

China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.

``China is very worried about the safety of its assets,'' he said. ``If you want China to keep calm, you must ensure China that its assets are safe.

Once again, key parts in bold. China doesn't want to dump it's holdings anymore than we would want them to. They stand to lose quite a bit too if the US market collapses.

Without yuan appreciation, China will continue to accumulate foreign reserves, which means further accumulating ``IOUs from the U.S.,'' said Yu. ``This is paper and it may default and it will not increase China's national welfare.''

Yup guess what that means. China wants to continue buying IOUs, aka T-Bills.

Guess China isn't so interested in causing the collapse of the global economy as you state. I'm glad you're stockpiling though, because you are helping our economy out. So please go stockpile some more.

 

[JS80]

Originally posted by: nullzero

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

From my understanding is the government is going to buy MBS and other assets from the banks. However its not clear at what price to be paid? I am sure its going to be above the real market price (if it wasnt then the bank would fail). Henry Paulson then says that we would hold on to them and sell them later on and may even make a profit off some of them. Yet there is no firm information on how much can be bought and sold again and again in a certain period of time. The only concrete thing I have heard is that we can buy up 700 billion in assets at one time.

Lets come up with a hypothetical situation...

Bank ABC needs to be rescued has 20 billion (market value) in Mortgage Backed Securities it needs to get ride of. Bank ABC needs 80 billion and says that the assets are worth 80 billion (what it was worth 4 years ago). Treasury then buys from bank ABC at 80 billion. 3 days later turns around and sells it back to bank ABC for 20 billion.

"Real market price" right now is $0. There is no market. Market is frozen. It's illiquid. Paulson is no fool, he's not going to buy at a premium so high NPV is negative.

 

[SSSnail]

Cocaine, it's one helluva drug.

 

[JS80]

Originally posted by: DisgruntledVirus

Originally posted by: nullzero

Originally posted by: Darwin333

Originally posted by: nullzero
I believe we are heading into the worst hyperinflation we have ever seen in a society. This 700 billion dollar bailout plan will just be the match that starts the fire.

Did you guys see Bush's face... it looked grim during the financial disaster speech. Imagine how bad it really is if the government is already admitting to a major economic disasater. Guys prepare for the worst... If this bill passes we are going into hyperinflation.

Once this bill passes, I gurantee people will start hoarding gold, guns, ammo, any hard asset they can run off with. China will soon then dump their massive T-Bill reserves. Japan and South Korea will soon follow afterword to get out before the door hits them. This dumping of T-Bills will further intensify the hyperinflation. Soon after this we can expect millions of people starving, rioting in the streets, and marshall law. If you dont think this can happen dont kid yourself because look how fast this economic disaster has materialized.

What in the world does China have to gain by further devaluing the currency of their biggest customer? It is in China's best interest for the US to have as much buying power as possible. Not that we are in a good position or anything, I just don't see China (nor Japan or S. Korea) shooting themselves in the foot anytime soon.

China already warned us it was going to dump if we didnt bail out Freddie and Fanny. There has been talk going around that China wants to start its own pan Asian currency like the Euro but for Asia. China has very little to loose if they dump and cut the relationship off with the U.S. they have enough domestic demand and many other countries that they could do business with. China can also dictate economic policy or social policy on the fly.

Don't fool yourself guys these countries are ready to dump at the twitch of a finger.

http://www.bloomberg.com/apps/...chive&sid=anZHfo6tQi60

You should learn to understand an article before you cite is as "evidence". Assuming you're not trolling I will help you to understand your own source.

``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23

Oh so China is in the same boat, and if they want to avoid a financial crisis of their own they have to help us. Guess that means no mass sell offs of T-Bills.

``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided.''

Key part is in bold for you. A Chinese company is saying "hey if T-Bills get dumped that's a bad thing for all economies, and we need to avoid it at all costs"

China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.

``China is very worried about the safety of its assets,'' he said. ``If you want China to keep calm, you must ensure China that its assets are safe.

Once again, key parts in bold. China doesn't want to dump it's holdings anymore than we would want them to. They stand to lose quite a bit too if the US market collapses.

Without yuan appreciation, China will continue to accumulate foreign reserves, which means further accumulating ``IOUs from the U.S.,'' said Yu. ``This is paper and it may default and it will not increase China's national welfare.''

Yup guess what that means. China wants to continue buying IOUs, aka T-Bills.

Guess China isn't so interested in causing the collapse of the global economy as you state. I'm glad you're stockpiling though, because you are helping our economy out. So please go stockpile some more.

If I were an evil Chinese dictator I might spread fear and rumors to other asian nations holding treasuries and encourage them to dump in the market so that I could buy it at discount prices with the huge dollar reserve.

But clearly they are not taking that route.

 

[piasabird]

If you bail out the home mortgage brokers, then what is the structure in the market that wil keep prices lower?

I have thought for years that some housing needs to be available in smaller house sizes. Builders keep building houses bigger and bigger.

 

[Craig234]

Originally posted by: JS80
"Real market price" right now is $0. There is no market. Market is frozen. It's illiquid. Paulson is no fool, he's not going to buy at a premium so high NPV is negative.

What's your background? Your misunderstanding of the rescue plan is astounding.

 

[nullzero]

Disgruntled,

The article just further leads to speculation of mass dumping of T-Bills. Why in the first place would those 3 countries need to come together to make sure there is no panic between one another from dumping? Its a big concern and worry among all those involved holding the T-Bills. Its like a poker game with the big players holding the T-Bills.

 

[nullzero]

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

From my understanding is the government is going to buy MBS and other assets from the banks. However its not clear at what price to be paid? I am sure its going to be above the real market price (if it wasnt then the bank would fail). Henry Paulson then says that we would hold on to them and sell them later on and may even make a profit off some of them. Yet there is no firm information on how much can be bought and sold again and again in a certain period of time. The only concrete thing I have heard is that we can buy up 700 billion in assets at one time.

Lets come up with a hypothetical situation...

Bank ABC needs to be rescued has 20 billion (market value) in Mortgage Backed Securities it needs to get ride of. Bank ABC needs 80 billion and says that the assets are worth 80 billion (what it was worth 4 years ago). Treasury then buys from bank ABC at 80 billion. 3 days later turns around and sells it back to bank ABC for 20 billion.

"Real market price" right now is $0. There is no market. Market is frozen. It's illiquid. Paulson is no fool, he's not going to buy at a premium so high NPV is negative.

Then can you answer my question? What what price is paulson BUYING and SELLING?

 

[brencat]

Originally posted by: nullzero

Originally posted by: brandonb
The best thing to do is stock up on arms and ammo.

I'm glad I already did before my dollar became worthless. I hope the rest of you did too.

I have over 5k rounds of .308 because I could forsee what was coming.

5000 rifle rounds!! OMG LMAO :laugh:

I only have about 200 .308, along with 50 .45 and maybe 100 9mm. Damn, I'm coming over your place when the sh*t hits the fan!

:laugh:

 

[nullzero]

Originally posted by: brencat

Originally posted by: nullzero

Originally posted by: brandonb
The best thing to do is stock up on arms and ammo.

I'm glad I already did before my dollar became worthless. I hope the rest of you did too.

I have over 5k rounds of .308 because I could forsee what was coming.

5000 rifle rounds!! OMG LMAO :laugh:

I only have about 200 .308, along with 50 .45 and maybe 100 9mm. Damn, I'm coming over your place when the sh*t hits the fan!

:laugh:

LOL sure come on over... We will have a big hyperinflation party! Hehe

 

[DisgruntledVirus]

Originally posted by: nullzero

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

From my understanding is the government is going to buy MBS and other assets from the banks. However its not clear at what price to be paid? I am sure its going to be above the real market price (if it wasnt then the bank would fail). Henry Paulson then says that we would hold on to them and sell them later on and may even make a profit off some of them. Yet there is no firm information on how much can be bought and sold again and again in a certain period of time. The only concrete thing I have heard is that we can buy up 700 billion in assets at one time.

Lets come up with a hypothetical situation...

Bank ABC needs to be rescued has 20 billion (market value) in Mortgage Backed Securities it needs to get ride of. Bank ABC needs 80 billion and says that the assets are worth 80 billion (what it was worth 4 years ago). Treasury then buys from bank ABC at 80 billion. 3 days later turns around and sells it back to bank ABC for 20 billion.

Wow. Just wow.

Read this as a start.

Pay attention to where it talks about the US gov buying these mortgages, then is going to resell them. I am fully expecting you to come back with something along the lines of that will push us more into the Great Depression v2.0, but you really need to learn more about this instead of talking out of your ass.

 

[JS80]

Originally posted by: nullzero

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80

Originally posted by: nullzero

Originally posted by: JS80
There won't be inflation. It's trading asset for asset. If the govt raised $700 billion to just give it away to people, then there would be inflation.

What they are doing is buying a asset at a inflated above real market value cost then turning around and selling it for a huge loss. The money between the price bought and the price sold at is my question... Where does it go? It goes into the banks pockets. Money that was not there before is suddenly there now in the financial system. Its money that just appeared out of thin air. Its not tax revenue or reserves that the government had. Its a increase in the money supply which devalues everyone who holds that money.

What's your background? Your misunderstanding of the rescue plan is astounding.

From my understanding is the government is going to buy MBS and other assets from the banks. However its not clear at what price to be paid? I am sure its going to be above the real market price (if it wasnt then the bank would fail). Henry Paulson then says that we would hold on to them and sell them later on and may even make a profit off some of them. Yet there is no firm information on how much can be bought and sold again and again in a certain period of time. The only concrete thing I have heard is that we can buy up 700 billion in assets at one time.

Lets come up with a hypothetical situation...

Bank ABC needs to be rescued has 20 billion (market value) in Mortgage Backed Securities it needs to get ride of. Bank ABC needs 80 billion and says that the assets are worth 80 billion (what it was worth 4 years ago). Treasury then buys from bank ABC at 80 billion. 3 days later turns around and sells it back to bank ABC for 20 billion.

"Real market price" right now is $0. There is no market. Market is frozen. It's illiquid. Paulson is no fool, he's not going to buy at a premium so high NPV is negative.

Then can you answer my question? What what price is paulson BUYING and SELLING?

Whatever he tells the banks he's going to buy it for. He's going to BUY LOW and SELL HIGH.