"The proper way to resolve a banking crisis is not to buy toxic assets but rather to recapitalize banks directly via injections of public capital (in the form of preferred shares) into distressed but solvent financial institutions," wrote Nouriel Roubini, professor of economics at New York University's Stern School of Business, on his blog Thursday.
This argument emerged as one that made sense to me during the wrangling over the bailout bill. Paulson is now reported to be considering it. Good.
2 comments:
Roubini is a fucking prophet. I've been reading him for a while now, too.
Here's the link to a detiled Roubini explanation of how the asset-purchase clause was added into the TARP deal. (Subscription required)
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