Solving the Subprime Mess: A Modest Proposal
I’ve come up with my own solution to this problem, since no one else seems to be doing much about it. Here are my thoughts, continued on the Industry Standard site —
Fixing the subprime mess: A Modest Proposal
By Mark Anderson, CEO, Strategic News Service
Now that both Wall Street and the federal government have had their turns to take multiple whacks at emergency fixes for what most people call the subprime loan crisis, the results are clear. The first effort, an ad hoc move by central banks to catch the problem in time, turns out to have been too little, if not too late. (The euro folk put in 350 billion euros in just one week last month.) A more recent attempt by Treasury Secretary Hank Poulson to rally private banks worldwide, led to a few large-scale independent cash injections, but no one bought the unified bank action package, and it literally evaporated as individual banks chose to take huge write-down baths one by one (Citibank, $18 billion to 24 billion and counting; Merrill Lynch, $10 billion to $27 billion).