Hussman Funds - Weekly Market Comment

Hussman Funds - Weekly Market Comment:

"The appropriate solution is not for the government to purchase bad assets with public money. The only way such a transaction would add to the institution's capital would be for the government to overpay for those assets. Rather, the government should either a) provide new capital, taking a claim in front of the company's bondholders and stockholders, or b) execute a receivership of the failed institution and immediately conduct a “whole bank” sale – selling the bank's assets and liabilities as a package, but ex the debt to bondholders, which preserves the ongoing business without loss to customers and counterparties, wipes out shareholder equity, and gives bondholders partial (perhaps even nearly complete) recovery with the proceeds." (Emphasis Mine.)

"Overpay for those assets." Overpay. 

Unlimited-$700-billion-at-a-time-with-no-executive-salary-caps-or-possible-decision-review, anyone?