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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ajtj99 who wrote (186052)2/23/2009 5:40:41 PM
From: neolibRead Replies (2) of 306849
 
If you wipe out the bank's equity and nearly all the bond holders, purge the boards and management, then recapitalize, it's a better fix than trying to save underwater homeowners.

Err...why won't the cycle repeat after that with the new management?

Break the larges banks up, and make it clear to future bank managers that they are no longer too big to fail. Next pass some legislation that attaches strings to all upper management's pay (including bonuses) on a declining basis, for the past 7 years in case of bankruptcy. That might solve the problem.
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