The Kotlikoff-Mehrling Plan: Better than the Paulson Bailout

In 1992, a Swedish real estate bubble burst, creating a banking panic and freeze. The Swedish loaned banks money, but in exchange, forced banks to promptly write down bad real estate investments and issue warrants to the government. Warrants–the right to purchase stock at a preset price–gave the government bank stocks cheap. At the end . . . → Read More: The Kotlikoff-Mehrling Plan: Better than the Paulson Bailout