Economist-bloggers “The Baseline Scenario” propose an beautiful solution to our gloomy recession: Banks are desperate to offload their toxic assets, and bankers are desperate to get their bonuses:-

“Why not say that all bank compensation above a baseline amount – say, $150,000 in annual salary – has to be paid in toxic assets off the bank’s balance sheet? Instead of getting a check for $10,000, the employee would get $10,000 in toxic assets, at their current book value.”

The beauty of this idea is that it aligns the banker’s greed motive with the public good. Rather than simply maximize profits at the expense of the poorest a banker’s bonus would actually depend on financially enfranchising worst-off debtors.

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