|
Buiter and Soros: don’t throw good money after bad |
Groundhog day: Geithner botches another bailout
ING and the Dutch government pass taxpayers the bill
What about reversing the prevailing notion of having the state capitalize bad banks to own toxic assets, so subsidizing surviving good banks, owned by private shareholders and funded by private creditors and depositors, and freeing them to resume prudent lending? What about the idea of the taxpayer capitalizing the good bank, leaving existing private shareholders and creditors to take their chances on recoveries from the bad bank?
Willem Buiter, professor of European political economy at the London School of Economics...
