James Galbreath – declare bad banks insolvent, get Bair involved

A great idea from the Texas professor, but Summers-Geither will never go for it.

Short of that, Galbraith is worried about how much due diligence on bank assets the Dynamic Duo and their minions will or will not conduct.

He also asks why, since we’re talking about banks, Federal Deposit Insurance Corporation head Shelia Bair isn’t calling more of the bailout shots.

Finally, bitch-slapping New Deal potency-deniers, Galbraith notes that people in government programs such as the CCC weren’t counted as being employed, so the New Deal was actually better than even some liberals recognize.