-
One way of responding to an externality is with a subsidy.
-
The idea of subsidizing institutions to raise capital
-
seems quite untenable in the context of
-
the institution's shareholders holding onto their shares.
-
So in a way, we operate a system
-
where the government can't infuse capital into an institution
-
until the situation is very far gone,
-
but once the situation is very far gone,
-
it is very far gone.
-
I don't think it's inconceivable that
-
the government will have to infuse capital into institutions
-
on a significant scale in the course of this crisis;