On the Urgency of Restructuring Bank and Mortgage Debt,
and of Abandoning Toxic Asset Purchases

http://hussmanfunds.com/wmc/wmc09033...

In short, attempting to avoid the need for debt restructuring by wasting trillions in public funds increases the likelihood that the current economic downturn will be prolonged, places a massive claim on our future production in order to transfer our nation's wealth to the bondholders of mismanaged financial companies, and raises the likelihood that any nascent recovery will be cut short by inflation pressures. We are nowhere near the completion of this deleveraging cycle.