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| A Soros Solution for the Global Meltdown |
| 2009-03-20 |
| Posted by:tipper |
| #1 Soros: I advocate separating the existing assets of the banks and leaving the existing capital to be responsibleÂ… to suffer first loss, if the value of the assets decline, and put new capital into the future business of the bank. So separate past businesses from future businesses, and create a clean bank within the bank, which is not weighed down by these toxic assets that are losing value. Soros is right, although he doesn't explain it very well. Buying toxic assets is a huge mistake. It's just socializing loses and letting shareholders off the hook for the loses. |
| Posted by: phil_b 2009-03-20 21:59 |