If a financial asset has gone bad, then why is it still an “asset”?
Howell E. Jackson, a professor of law at Harvard Law School presents an alternative bailout plan in the Christian Science Monitor. This plan helps homeowners more directly, and pays the investors something closer to fair market value for their bad investments.
If I had my way, I’d let the people who can’t pay their debts and the bankers and investors who made the crisis possible all suffer the consequences of their acts. Unfortunately, something does need to be done to keep the whole mess from dragging the economy down even further. But why should the investors be bailed out without helping the people who are being pushed out of their homes? Write your congresscritter and let him/her know what you think.
And vote for people who realize that the economy needs to be properly regulated!