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Will the US Fashion a Smarter Bailout Plan?

Posted on October 09, 2008

So far, we in the US have had an ad hoc, half-assed, on-the-fly approach to resolving the credit and financial crisis. The smartest bailout approach to date has been the British/Swedish/Buffett approach: Inject capital at a corporate capital structure level by buying preferred stock, rather than at the balance sheet level by buying bad assets. Now, we read that the Treasury is considering following these other, smarter approaches: Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to re...

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economy , gilts , program , system , treasury secretary