The reason I don't actually know what a Bad Bank ""solution"" is, is that it just intuitively sounded to me like bullshit . The same with Carbon Trading — which struck me as a false market with huge possibilities for scams. Revealing that ENRON and Goldman were so enthusiastic about it . I am indebted to the late Postman Patel, the blogger Edward Teague, for his witty de-bunking there !

I fear we have some fighting to do to see it happen, not least ideologically. The financial class employs a lot of megaphones. "It's the problem wiht living in a parallel reality from the mian media and their experts. Somtimes I think it would be more appropriate if this blog came in on crakly wavering short wave not in digital clarity" (excellent prose, you remember "You are only coming through in waves…."

People must be painted the true picture. We must wake up the comfortably numb. If the people loose, the financial class get to keep their stack while the people looses all their pensions and savings. We say; before any final loss on public purse is taken, bond holders and financial institutions shall be stripped to the bone!

Thanks for the link. I took a look. Yep. Another person saying what people have been saying for the last two years. At some point we will reach a critical mass.

I agree that onyb a root and branch solutin has a hope. I don't agree with reaching for the good/bad bank solution. That doesn't seem to me to be rrot and branch.

You can't lance a boil by carefully taking the puss and moving it to some less sore part of your body.

It's not bad debts its now bad institutions and in fact a bad system binding them together – it is now systemically toxic.

Give the financial sector a timetqble for when you are going to forcibly mark everything to market. Do it in tranches. Give a few months between stages to allow the banks to do the paper work. Give them a firm timetable at the end of which everything they have not marked to market themselves, will be done for them. And everything they have not been able to sell is now worthless.

Nearly all the banks will implode. They will lumber on in receivership as they wind themselves down. For as we all know, floating in the sea of lies and debt there is still a vast wealth of GOOD assets and paying debts. Those good debts MUST be disentangeld from the derivative purgatory they are caught in. If the banks won't do it. we do it for them.

It's not so far from compulsory purchasing of properties. And like all such compulsoin it is NEVER a fair price. This time the bankers get to feel robbed. And I'll cry them a river.

If there are not enought real buyers still standing, then buy/transfer the good assests at compusory purchase price – which given what we have already paid into them and what hthey therefore owe us – probabaly means we pay NOTHING more – a compuslsory price I like the sound of – Those assets we simply transfer to newly capitalised publically owned banks.

In the UK we could use the Post Office. We could also put money into healthy banks such a s The Cooperative. _ Hey, why do we feel fine about pouring money into dead banks but feel its somehow wrong to do the same for healthy ones? Makes no sense to me. This is a crisis. We need to cast aside failed assumptions.

So take whatever is left of the insolvent banks sell it off or simply transfer to clean newly capitalised banks (you can IPO them later).

The debts of the dead banks we deal with by cramming down the bond holders. Yes, the rich, the mighty, the sacred bond market and all the funds aand pensions and insurace whose value is tieed to them. I KNOW. Take the bond holder's money, starting with the lowest, and cram it down to pay off the debt. And you just keep going. Right up until the last super senior if you have to.

Pensions will get pole axed. AS THEY GOING TO BE NO MATTER WHAT. We really do have to grow up here. Pensions are screwed. In fact they have been for a number of years.

What we don't want, or rather what I don't wabnt, is to be forced to indebt myself further pursuing a plan which will fail to 'recover' anything other than the wealth of the wealthy.

http://www.guardian.co.uk/users/kurringai/comments

( 30 may 6.47am )

Dave