Wednesday, January 28, 2009

Ya think?

As usual, George Soros has a flair for understatement.

Soros is criticizing the idea of creating a publicly-held "bad bank" through which the government could isolate the toxic mortgage debts the banks hold and thereby limit further damage from the credit crisis.

What he wants to do instead is create a government-held "good bank", consolidating all of the non-toxic assets into one central depository, although he cautions that it would "too closely approach nationalization".

Yeah, I think governmental control of the near entirety of good capital in the financial sector would be just a bit more than "approaching nationalization".

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