Rafael Grillo

As the Fed Runs Out of Money, Resolution Trust Plan Refloated

The nature of the beast is so huge and convoluted, nobody really understands at this point exactly what is required to solve it. One thing is certain: we are all going to pay for this mess in one way or another. Americans can't have the cake and eat it too. For starters, I'd like for the presidential candidates to stop talking about tax cuts. This country will need tight fiscal discipline to be able to face the financial issues. Even the Government can run out of money, and continue borrowing will only create a more fragile and explosive economic situation in the long run. RTC should be funded with tax money. Second, the responsibles for this mess should to held accountable. Grossly incompetent CEOs who failed on their fiduciary duties are being let go just to enjoy their millionaire golden parachutes. In the meantime, trusting investors are seeing their investments disappear. Failing firms should be orderly liquidated and penalties imposed to pay for the costs imposed on the taxpayers. I'd even love to seek the recovery of unearned bonuses in those for the last 3-5 years, although I know that is next to impossible.