[lbo-talk] Don't Bail Out! Recapitalize!

[Charles Peterson]

OK, I'm convinced action is necessary.  But it's still
important, very important, to do things correctly.

I sent the following letter to Congress today:

Don't Bailout!  Recapitalize!

The consensus among economists is that the TARP plan
is fundamentally flawed.

The sharpest economist around is Professor Nouriel
Roubini of RGE Monitor.  He outlines three required
steps (a) triage the banks, close the bad ones
quickly, (b) recapitalize the good banks by buying
preferred shares, and (c) reduce foreclosures with a
HOLC type program.

The TARP plan won't work, and it will make matters
worse.

This is sufficiently important that Congress should
stay in session until a proper plan can be passed.

Charles Peterson