Reply #25: Mulsh is right

[Yupster]

The bailouts didn't help the shareholders. Each time the banks have to issue more shares to raise capital it dilutes the shareholders value so BAC stockholders who used to have $ 10,000 of stock now have $ 500 and Citi Bank shareholders are even worse off. Due to dilution, the value will never come back either.

You are right about bondholders though. That was the main purpose of the bailouts.

BAC must have the most bonds out there of any country on earth. Some are held by individual investors, but most are held by large insurance companies, other banks, teacher pension funds, union pension funds.

If BAC goes down it will take every large insurance company, large bank, pension fund down with them and we will be right back in the death spiral after Lehman Brothers bankrupcuy only significantly worse.