CNN Money has an article on alternatives to a bailout if no deal is done.
Among the steps that the government could undertake are:
-Suspend so-called mark-to-market accounting rules, which during the past year have required financial firms to write down more than $500 billion in losses.
-Change federal requirements that force banks to keep a certain level of cash on hand for every dollar they lend out.
-Give banks the chance to exchange loan notes for notes from the Federal Deposit Insurance Corp. As a government agency, the FDIC’s notes would be more valuable than the banks’ notes, allowing the banks more flexibility to make loans.
-Purchase on a massive scale mortgage-backed securities issued by finance giants Fannie Mae and Freddie Mac. The Bush plan calls for the Treasury to buy a broader range of mortgage-backed securities.
-Extend limits on short sales of financial sector stocks.
-Cut the fed funds rate – the Federal Reserve’s target for short-term lending – perhaps all the way to zero, or in coordination with rate cuts by other central banks around the globe.
Feel free to post links in your comments to other alternatives…
Apparently they need to fix a few technical things like the Mark to Market rule.
They probably need to create a rule that keep banks down to 10 to 1 leverage or therabouts.
Other than that get ready for a recession and DO NOTHING!
The ATM machines aren’t going to turn off folks. The president is fearmongering.