posted
Andrew Feldstein, the chief executive of Blue Mountain Capital Management, a hedge fund that specializes in credit instruments. He proposes that instead of buying bad assets that are crippling the balance sheets of the nation’s banks, the government should establish a “good bank” that would buy only solid assets.
By setting up such a bank — Mr. Feldstein envisions having the government put up $300 billion and taking an equity stake, so that taxpayers can profit when it is sold after the crisis passes — the government would make it possible for credit to “again flow to deserving borrowers.” Bad banks might eventually fail — but they would have a place to sell their good assets as they liquidate. Healthier institutions could once again start lending. Taxpayers would face much less risk.
posted
Problem with that is the banks or other financial companies do not want to fail... by doing what is suggested you are telling the banks to shut down...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
