New column: The Great Bond Bailout

wonk away...
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and at some point, I hope you'll explain why the FDIC provides insurance for deposits in banks it can't "unwind" -- it seems to me that the smartest thing to do is to announce that those deposits will not be insured after 30 days, and watch as the whole thing implodes as depositors withdraw their money from the bank.
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and since depositors have the first claim to bank assets in any bankruptcy procedure, the burden on taxpayers should be minimal.
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letting these global conglomerates implode would also help with the liquidity crisis -- the deposits that are withdrawn from these banks have to wind up somewhere, and that means a massive cash infusion for non-conglomerate banks.

So the answer is - always invest in debt!

I've heard many people say it, and I agree, that the banks will be back on their feet when they can again attract private capital.

This and many of the nationalization plans that have been bandied about are the surest ways to delay this outcome.