Invesco economist Greenwood says Darling's bailout plan beats US

The UK's bailout plan for the banking sector is more comprehensive than that of the US, although it i...

The UK’s bailout plan for the banking sector is more comprehensive than that of the US, although it is also more expensive, according to Invesco Perpetual’s chief economist John Greenwood. Comparing the two proposals, Greenwood noted that Henry Paulson’s plan will see the US Treasury spend $700bn primarily on the bad mortgage assets of the banks. The intention is to buy these assets, replacing them with cash so banks can begin lending again. “This is kind of good bank / bad bank solution,” he said. “Let the government hold the toxic debt for a while until the housing market recovers, and...