-
Bernanke,
the
Fed
and
the
Treasury
have
to
make
it
clear
where
the
“bailouts”
are
going
to
stop.
This
will
help
to
put
a
floor
under
the
financial
markets
and
decrease
uncertainty.
They
need
to
be
more
transparent
and
clear
as
to
who
will
be
and
who
won’t
be
saved.
The
piecemeal
approach
they
are
following
is
not
working.
Also
this
“drawing
of
the
line
in
the
sand”
should
be
coordinated
with
policymakers
in
other
OECD
countries
as
well
as
Russia
and
India.
Notice,
I
deliberately
left
out
China.
-
Structuring
the
bailout
as
buying
of
assets
was
a
mistake.
Instead
the
Treasury
should
have
injected
capital
into
the
banks
and
taken
an
equity
stake
in
return.
This
would
have
punished
stockholders
in
these
firms
by
diluting
their
ownership
stake.
This
would
also
give
the
Treasury
power
in
setting
executive
compensation
at
these
firms.
Is
this
socialism?
No,
it
is a
step
in
internalizing
the
fiduciary
responsibility
these
firms
have
to
the
broader
financial
markets
and
economy.
The
current
“leaders”
of
these
firms
have
demonstrated
they
are
incapable
of
performing
this
role
satisfactory.
-
The
Treasury
should
be
buying
the
mortgages
of
people
and
families
who
were
truly
victims
and
there
are
many.
But,
the
Treasury
should
not
be
using
taxpayer
money
to
bailout
real
estate
speculators
or
those
who
should
have
know
better
as
to
what
they
were
getting
themselves
into
with
these
sub-prime
and
Alt-A
mortgages.
But
how
does
the
Treasury
make
this
distinction?
They
need
to
set
up
some
system,
with
oversight,
to
do
this.
A
mortgage-based
RTC
is
what
is
needed.
-
Since
the
bailout
has
been
structured
as
it
is,
Paulson
should
have
named
someone
to
run
it,
and
the
buying
of
bank
assets,
who
has
a
great
deal
of
experience
and
credibility.
Potential
names
include:
Bill
Gross,
Chief
Investment
Office
at
Pimco,
who
the
Washington
Post
described
as
“the
nation’s
best-known
bond-fund
manager.”
Paul
Volcker,
former
Chairman
of
the
Board
of
Governors
Don
Powell,
former
head
of
the
FDIC
and
famed
Texas
banker
Glenn
Hubbard,
Dean
of
the
Columbia
Business
School,
former
head
of
the
Council
of
Economic
Advisors
So
who
did
Paulson
pick?
A 35
year
old
former
Goldman
Sachs
underling
named
Neel
Kashkari.
Needless
to
say,
this
was
not
a
great
confidence
building
move.
-
Once
the
current
liquidity
crisis
ends
the
Fed,
Treasury
and
the
new
President
are
going
to
have
to
put
in
place
measures
to
ensure
this
doesn’t
happen
again.
Among
the
things
they
need
to
consider
should
be:
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