A Better Solution

I wasn’t the first to say it (and I’m not taking any credit here), but my position on the bailout’s need for a remix (the government pumping buying equity stakes in banks) is being taken seriously, and at the highest levels.

My buddy Nick noted that Economist Nouriel Roubini is in agreement. Treasury is on board too–NYT reported a few days ago that:

Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending.

All the banks need to do is ASK FOR IT. Trust me, banks, you need it.

Treasury Secretary Hank Paulson was quoted by Bloomberg as saying “we see the need — a clear, present need — to raise capital,” by purchasing bank stock.

Let’s get it started, Mr. Paulson. Each day we delay the bank equity-stake buy is a day confidence will be scant.

U.S. May Take Ownership Stake in Banks - NYT

Paulson Indicates Need to Purchase Bank Equity `Soon as We Can’ - Bloomberg

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