Comments on: Credit in the US is collapsing http://www.creditwritedowns.com/2008/10/credit-in-us-is-collapsing.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2008/10/credit-in-us-is-collapsing.html/comment-page-1#comment-404 Edward Harrison Wed, 08 Oct 2008 00:51:00 +0000 http://www.creditwritedowns.com/2008/10/credit-in-the-us-is-collapsing.html#comment-404 Joe Six Pack is the innocent victim. And I promise to address this debt-for-equity swap idea. As you know, Buiter likes this and it has merit. What do you think of Gordon Brown's latest proposal? No debt for equity but it gets the ob done a lot better than Paulson's plan. Joe Six Pack is the innocent victim. And I promise to address this debt-for-equity swap idea. As you know, Buiter likes this and it has merit. What do you think of Gordon Brown’s latest proposal? No debt for equity but it gets the ob done a lot better than Paulson’s plan.

]]> By: Mark Wadsworth http://www.creditwritedowns.com/2008/10/credit-in-us-is-collapsing.html/comment-page-1#comment-403 Mark Wadsworth Tue, 07 Oct 2008 21:18:00 +0000 http://www.creditwritedowns.com/2008/10/credit-in-the-us-is-collapsing.html#comment-403 <i>Why is the treasury going around buying up bad assets at inflated prices</i><br/><br/>Good question.<br/><br/>First of all, banks should make a sensible write down on their mortgage advances. Then shareholders and bondholders should work out how that loss is to be shared between them via debt-for-equity-swaps.<br/><br/>After that, banks will be recapitalised and owned by people who understand the pain of reckless investing and lending.<br/><br/>Joe Six Pack is the innocent victim in all of this. Why is the treasury going around buying up bad assets at inflated prices

Good question.

First of all, banks should make a sensible write down on their mortgage advances. Then shareholders and bondholders should work out how that loss is to be shared between them via debt-for-equity-swaps.

After that, banks will be recapitalised and owned by people who understand the pain of reckless investing and lending.

Joe Six Pack is the innocent victim in all of this.

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