Now if only the Obama administration will listen!
Over the past few weeks, I have been slowly and steadily becoming convinced that "nationalization" i.e. FDIC taking receivership of the big bad insolvent banks, is perhaps the only right way forward. It is not that the plans presented by Geithner et. al will not produce anything positive, but they are unlikely to solve the problem of insolvency!
For more on why banks need to undergo an FDIC intervention, where current stockholders are wiped out, many if not all bondholders take a haircut, and then the banks are recapitalized and sold back to the private sector, read:
When it comes to Obama, one of the following is true:
* Obama and Geithner do not understand the problem.
* Obama and Geithner understand how to deal with this problem, but do not have the guts to do what is right.
I suspect that the latter is correct.
Elizabeth Warren knows her stuff. She has always been a representative of working-class America, as illustrated in her book, All Your Worth. I was most struck by how she explains that the rules of personal finance have changed.
Posted by: Damien (the bite size idea guy) | July 29, 2009 at 06:50 PM
That's true, Darmien. It begs the question what should you do about executive compensation which fuels the rankpay benefits debate?
Posted by: [email protected] | October 26, 2009 at 05:14 PM