[lbo-talk] more Dustup

[Charles Brown]

He seems to be agreeing to a bailout , but with a strict condition of
confiscating shares. Confiscating shares sounds kinda socialistic, even
if temporary - temporary nationalisation.  He seems to be sort of
compromising with you ? at least in that second to last paragraph.

^^^^

Second, even if we do bail out Freddie Mac or Fannie Mae, it does not
follow that we must bail out the existing investors. If the government
insists on pouring money into these institutions, here's what they
should do: Confiscate the existing shares, compensate the owners at a
fair price (the price that would prevail in the absence of any chance of
a bailout), revive the institutions, resell the shares (presumably now
at a much higher price) and use the revenue to fund a general tax cut
(or a deficit reduction).


>>> Doug Henwood <dhenwood at panix.com> 07/24/2008 3:54 PM >>>
My latest salvo with Landsburg:

<http://www.latimes.com/news/printedition/sunletters/la-op-landsburg-henwood24-2008jul24,0,5994887.story

 >

or

<http://tinyurl.com/5wo7v7>.

Doug
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