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October 03, 2008

Bail out everybody with a zero-coupon bond?

Via Jon Markman, that’s another option to either version of the train wreck that’s passed through one house of Congress, per Brian Reynolds.

He says Paulson should give $500 billion in rebates to all Americans via Fannie Mae zero-coupon bonds maturing in 15 years.

John P. Hussman has a similar idea, not involving Fannie Mae, for a “superbond” to be issued, though not necessarily to every American citizen.

That all said, Markman thinks the bailout issue (in some festooned form or another) will pass, but probably won’t work.

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