Roger Brown wrote:

It is meaningless to write of Dow performance without first considering GDP performance. 1998 - 2000 the Dow was significantly overpriced with respect to GDP. The correction was made 2000 - 2002; GDP, Dow both in percent: 6, -6; 3.2, -7; 3.4, -17. 2003, 5, 25. 1973 - 1982, Age of Inflation GDP, average was 2.4 pct per year and Dow 0.3 pct per year, inflation 7.8 pct per year. GDP performance comes first, Dow responds. If President Obama and Democrats misjudge their socialist economic program and damage GDP, the Dow and all of the pension, 401k plans will also be damaged. The People will have spoken. Fair.

Policy makers debated how the government's capital injections should be structured, especially the question of the dividend banks would pay. Make it too high, and that risked draining firms of needed funds and scaring off other potential rescue recipients. Make it too low, and taxpayers wouldn't be compensated for their risk. Another challenge: Inject capital without scaring away private investors.

A final deal between regulators was hashed out in Mr. Paulson's office Sunday afternoon. For Mr. Paulson, who had spent a career as an investment banker, the decision marked a reversal. Just weeks earlier, he had said that injecting capital directly into banks would appear to be a sign of "failure."