There's An Easy, Fair Solution To The Global Debt Crisis -- Too Bad No One Ever Talks About It: "re so huge that we will likely require a lender-of-last-resort to recapitalize bankrupt financial institutions after the "bankruptcy" and keep them operating (because, given the interconnectedness of the global financial system, it really would be a mess if the entire thing suddenly entered bankruptcy court at the same time).
But the need for a lender of last resort shouldn't scare anyone. In bankruptcies, there have always been lenders of last resort: They're called "debtors-in-possession." These folks provide the capital that the company needs to keep operating--in exchange for amazing protection and terms.
As long as the lender behaves responsibly, it will get the same terms that any debtor-in-possession would get: Its money will be "senior" to all other claims on the financial institution's assets. "
'via Blog this'
No comments:
Post a Comment