How sort out a crisis.
Spot on, in my limited understanding of any of this craziness. Do a GM on the bankrupt banks.
"The right thing to do, again, is to take receivership of insolvent banks and wipe out the stock and subordinated debt, using the borrowed funds to protect depositors in the event that the losses run deep enough to eat through the intervening layers of liabilities (which is doubtful), and otherwise using the borrowed funds to stimulate the economy after the restructuring occurs."
Not what we are doing now.