On Mar 24, 2008, at 8:48 AM, Jon Baranov quoted Dean Baker:
This is also nonsense. We know how to keep banks operating even as they go into bankruptcy. England just did this with Northern Rock, a major bank that managed to get itself into huge trouble because of its holding of bad mortgage debt. After it was clear the bank was insolvent, the Bank of England stepped in and essentially took over the bank. It replaced the incompetent managers who had ruined the bank and brought in a new team to straighten out the books. The plan is to resell the bank to the private sector once the books are in order. The B of E dithered for weeks on the Northern Rock situation, rejecting a takeover offer by another bank. The British gov is now on the hook for billions of pounds. It's really not an inspiring model of anything. Doug ^^^^^ CB: Hey, maybe the British can sell it to China. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
