October 1, 2008
-- by Dave Johnson
Here is a good alternative plan: Recapitalise the banking system.
Instead of the government (us) buying toxic debt we invest in those banks that are solvent, which gives them reserve capital for lending. Other investors will then step in as well. Current shareholders are diluted.
The public ends up profiting. The banking system recovers. The bad actors lose out.
Posted by Dave Johnson at October 1, 2008 6:21 AM
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