From Clusterstock:
Nassim Taleb and his hedge-fund partner Mark Spitznagel weigh in in the FT with an analysis of the world's problem (too much debt) and a reasonable solution (convert some of the debt to equity)...
Converting debt to equity is what corporations do when they go bankrupt. GM and Chrysler just did it, and the airlines will do it next time they go bust. Same for the hundreds of other companies that go broke every year.
For some reason, however, this solution has NOT been seriously considered as a way to mend the housing market. It should be...
Read full article...
More from Taleb:
Taleb's 10 rules to prevent disaster
Hedge fund guru making HUGE hyperinflation bet
Taleb: Gold and copper may "rally massively" in coming crisis