If There Must Be A Bailout, Here's How To Do It

bloomberg.com — Treasury Secretary Hank Paulson's $700 billion bailout plan was one part robbery (with the banks doing the robbing) and one part accounting sleight of hand. No wonder House members rejected it. If the government wants to save dying banks before they take others down with them, it should choose the clean and direct path: Inject capital into them. Take ownership stakes in return. And, where that's not feasible, seize them and sell their assets in an orderly way.

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