Is bail out actually needed?

shabbir

I was just thinking of one possibility that if one company can sell all its ASSET to some company in China then why not others. I mean there will always be companies to buy out the troubled assets.

Example : Merrill Lynch sold its entire portfolio of mortgage backed securities in July.

So which one could be true

1. Is it the US government buying the asset which no other private organization would have bought at that price?
2. US is afraid of selling out its entire economy to others?

DavidJ

No we are seeing an alternate bail out

shabbir

Also see Why no bail out for Lehman brothers?

priyad

I think you've hit it, Uncle Same likes to reign others and not vice versa,
and the mighty lords of Wall Street do not take losses well either!
my choice would be first two options!

priyad

and oh! whoever was thinking of complete selling to China, Uncle Sam doesnt take even negligible proportions of doing so!