The real estate and financial crisis has become the biggest item in the news worldwide, and the U.S. Federal Reserve and Dept. Of the Treasury are just starting to take action on the $700 billion bailout plan to purchase mortgage backed securities from financial institutions. Aside from watching the markets gyrate in anticipation, there isn't much for us to evaluate about this program so far. The size of the bailout and method of using reverse auctions to purchase mortgage backed securities have been questioned by critics as being either too big or too small, and in either case perhaps not an effective way to restore liquidity to markets. One aspect that may soon become apparent is whether and how quickly banks and firms may jump back into the market. Warren Buffett made a $5 billion investment in Goldman Sachs, and once the Congressional bailout became law, Wells Fargo bid to assume all of Wachovia Bank's debt in a purchase bid that may prevent rival Citibank from gaining control. These investments may indicate that others will sense opportunities and jump back into the market now that there is a way to value the mortgage backed securities. The latest statement from Federal Reserve Chairman Bernanke indicates that despite the many actions and programs currently being implemented, the Fed is counting in part on the markets to revive themselves.