There is no ideal solution, but the alternative of letting the banking system to collapse is too scary to contemplate.
Those who think letting the banking system collapse will return us to old fashioned capitalism are dead dead wrong. It would instead lead to a new wave of FDR style socialism.
One of the smarter posts I’ve seen on this thread. Thanks!
However, you need to realize that an RTC-style setup (which takes approximately 2 years to establish and get running) will not solve this current problem. It's a big gulch between the S & L problems and the current issues in the derivatives market.
The ONLY thing that ths will do is get money moving again between financial institutions - because they have just been given a free ride on the gravy express.
Agreed.