I have previously expressed my puzzlement at Tim Geithner's desire to create a market for toxicity by using tax dollars to snap up the toxic assets clogging the pipes over on Wall Street. Of course, he'll give "the market" the chance to buy these "assets" too, but if there are losses to take, it looks like, under his plan, the taxpayers will take the biggest hit.
The guys over at Baseline Scenario are promoting a better use of these funds - let's use these toxic assets to fund the bonuses of the Wall Street executives who worked so hard to accumulate them.
I like this idea. I like it very much. The guys on Wall Street worked very hard - and earned so very much - as they accumulated these poisonous assets on their books.
Let that work pay off - use those funds to pay their bonuses - not taxpayer dollars from the feds. The good news - I'll bet there'd be no regulatory strings attached to those bonuses....
The Baseline Scenario folks aren't claiming credit for this idea - in fact, they're holding a contest to determine who originally came up with this brilliant use for Wall Street's toxic assets.
Check it out here.