Where did I find the solution to this horrific problem? The WSJ? Barron’s? The Economist? Geithner’s Blackberry? Of course not. It was a comment on Clusterstock by some guy named “jrh”:

I propose a “modified Swiss plan”

  • Let the banks name a price they feel confident in for their crappy assets
  • The government buys half or more of the assets
  • All executive compensation (beyond a minimal amount) is paid in aforementioned crappy assets, valued at the price stated by the bank

Brilliant!