Separating the Good Apples?
The following is a story about how the financial crisis is spilling over into the real economy:
http://www.economist.com/blogs/freeexchange/2008/10/frozen_trade.cfm
Because sellers deem buyers’ letters of credit to be worthless, they are refusing to fulfill transactions. It should be part of the bailout package, then, to try to separate the bad apples from the good apples. There must be banks out there internationally and domestically that are not heavily exposed to the tainted assets. These “good” banks should be identified as such through systematic audits and be facilitated to carry out retail and commercial lending activities.
