An acquaintance claimed that if there had been a temporary nationalization or formal receivership of the failed banks, most of the unpayable debt could have been wiped out by wiping out the bondholders. (This would be complicated by the necessity of not wiping out major institutions holding those bonds, but you could have at least negotiated a reduction in that debt to less than 100% on the dollar.) So one of the big objections to the way the bailout is being done is not making the bondholders take any share in the losses.
Is the premise correct? Is debt to bondholders anywhere close to the total excess of debt over assets in failed institutions? What about the the conclusions drawn from this. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
