It looks like a bank aggregator for bad assets is pretty much a done deal.  David Axelrod said yesterday we should expect a new approach within a few days, and leading reporters (NYT, Washington Post) have discerned that this is likely to include a “bad bank” into which troubled/toxic assets can be disposed.

We don’t yet know the details, and these matter a great deal (for the taxpayer and for the gradient of the road to recovery) but it’s not too early to think about the global implications, at least in qualitative terms. Continue reading “Global Consequences of a US “Bad Bank” Aggregator: It’s Mostly Fiscal” →