Good article in the NY Times today on the active discussions inside the Obama administration on this very topic. The pros and cons are all highlighted. Barron’s also chimes in with their opinion in this week’s edition. They focus more on the various approaches to creating a “bad asset” bank, one that would take all the toxic assets off the bank’s balance sheets.
It’s increasingly clear that bold, far-reaching action of some kind is needed swiftly.
“Regardless of the approach they take, this is no time to be timid,” says Eugene Ludwig, who was comptroller of the currency in the Clinton administration. “We have to excise all of the cancer if the patient is to recover.”