Don't fracking pay for distressed assets. Put the bankrupt financial firm in receivership, find the liabilities that you want to be able to discharge to keep the economy running, put enough good assets in place, starting with the firm's, to back those assets. If there aren't enough good assets, make it good with sovereign debt and take a preferential charge against the original firm.

Then send the original firm through bankruptcy and let the distressed assets be sold at fire sale prices to whomever wishes to hold them.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.