Treasury Secretary Timothy Geithner's announcement yesterday of a non-plan of action on a new banking bailout invited not only immediate criticism, but also its first counter-proposal. Hot off the presses, George Soros has just released an advanced publishing of chapter 10 of his forthcoming book "Reflections on the Crash of 2008 and What it Means".
Soros's offers a five-point plan, consisting of:
1. A ﬁscal stimulus package
2. A thorough overhaul of the mortgage system
3. Recapitalization of the banking system
4. An innovative energy policy
5. Reform of the international ﬁnancial system
Of particular note are Soros's ideas concerning overhauling the mortgage system, in which he invokes the Danish system, which ensures mortgage issuers maintain some exposure to the underlying debt, as a model for reform in the U.S. system. If anyone has Sec. Geithner's email, send this link along with Mr. Soros's regards (though he no doubt he already has).