[lbo-talk] Roubini: a haircut not a bailout

[Shane Taylor]

Nouriel Roubini argues that as Fannie Mae and Freddie
Mac would be insolvent as private institutions, they
should be forced into the equivalent of Chapter 11
bankruptcy. Force a haircut from bondholders, not a
bailout from taxpayers. The creditors are paid a
rising risk premium, so they deserve to bear the risk.

scroll down to the last excerpt in the post:

http://www.nakedcapitalism.com/2008/07/roubini-restructure-fannie-freddie-debt.html

Shane