Mark Thoma wrote a fantastic post today on “"How to Design a Bank Bailout that Works"”
Here’s ONLY a quick extract
“How to Design a Bank Bailout that Works”
Johm Hempton disagrees with me and others that the problem in financial markets is fundamentally one of solvency, i.e. lack of adequate bank capital. He says it is a matter of trust, trust that was destroyed by lies and deceptive practices among other things. If he is right, bank recapitalization al…
Read the full post from Economist’s View
Tags: Economics, Policy, Financial System
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To view the rest of this excellent post, you MUST go here