Note that

1. Goldman Sachs has admitted the Investment Bank business model is not viable;
   
2. it has accordingly announced plans to spend $50bn buying retail banks (small regional ones)
   
3. it is likely the bailout will buy GS's bad assets at at least a $50bn premium

On 3) it is clear that the solvent banks will be the ones to benefit from the bailout - even if they don't overprice their assets significantly (and, being solvent, they don't need to and in a "reverse auction" they won't). The funny thing about the bailout is that the insolvent banks would have to overprice their assets in the auction in hopes of being recapitalised and that reduces the likelihood of their assets actually being bought in the "reverse auction".

<sigh>

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith