Takeaway #1
Former President Bill Clinton, speaking at the 2009 World Economic Forum, said that the only "toxic" assets that exist are the bundled securities of sub-prime mortgages, taking exception to the term "Bad Bank."Takeaway #2
Clinton cited the actions taken by the US Government during the Great Depression where houses and mortgages that were in trouble were purchased and then resold to consumers as the market picked up, recouping tax-payer expenses.Takeaway #3
Other countries must finance our recovery but must do so because they need the US economy to be strong so that it buys their exports.
Takeaway #4
Clinton says a bank should be created to hold undervalued assets, help other banks clean up their balance sheets, get them to loan again, and then put the bad assets back onto the market to pay back the treasury notes.Takeaway #5
Banks have a theoretical lending capacity of $6 trillion on deposit with the Federal Reserve which could be used to make loans and stimulate the economy far more than Obama's proposed stimulus plan.
