Thursday, July 17, 2008

Things No One Talks About -- Yet

In today's bank crisis it is dawning on me: so if all banks are in trouble, where does one put one's money? What about a corporation? Break everything up into $100,000 insurable amounts? Impossible for a Procter & Gamble.

Start one's own bank? Impossible.

Cramer last night had a three-part answer, based on the savings & loan crisis. And I'd bet that the government does just what he suggests: set up a Resolution Trust to buy up all the "bad" paper of the banks. Then let Wells Fargo's of the world (there's got to be other "good banks" doesn't there?) buy up the rest of the good operations of the failing banks.

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