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A Bailout Alternative


Let investment banks go bankrupt, and their assets should be auctioned by the government as if they were people that had died intestate.  Proceeds of the estate sale should go intot the general fund to be applied against the national debt

The government should act as a caretaker to continue to receive current mortgage payments to be paid into an escrow account, which will be added to the value of the house. Houses should be put up at auction, like any estate sale.  People in the homes should get first option on refinancing their home at reasonable market rates against the original value of the mortgage or the auctioned value, whichever one is LOWER.

when investment banks go bankrupt, the requirement for the function will still be there,  and investment money will flow into the vacuum and replace the old banks with new organizations that will be fully seized with the business risk associated with the sector.  money will flow into the defunct sector much like settlers leaped at the opportunity of the Oklahoma land rush.  Buffet would leap at the opportunity to occupy that business sector especially if jump started by the inevitable government money.

the last people on earth to be entrusted with public money to bailout Goldman Sachs are former CEOs of Goldman Sachs and the elected representatives who have been bought and paid for by investment bank campaign controbutions.  they have already proven decisively that they are not trustworthy stewards of public money and trust.  dont throw good money after bad.

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