Can Someone Explain The Concept of Tough Love to our Government?

I’ve said it before, and I’ll say it again, but bailouts must involve significant pain in order to be effective.  The bailout of Bank of America was far too gentle.  Many firms would want capital on those terms.  Bailouts should be an unwanted last resort that preserves stakeholders with priority claims, but destroys equityholders, and other junior claimants.

I’ve submitted many of my policy ideas to the Obama administration, but they haven’t gotten a warm reception.  If any of you would like to vote my ideas up, go ahead and do so here.  Thanks; maybe the Obama administration will prove more open-minded than the Bush, Jr., Administration.