The Business Insider – Nassim Taleb and his hedge-fund partner Mark Spitznagel weigh in in the FT with an analysis of the world’s problem (too much debt) and a reasonable solution (convert some of the debt to equity).
As usual, Taleb lards up his argument with guru-speak and smug swipes at every other economist on the planet, which undermine the point. But in this case, the point is a good one.
Converting debt to equity is what corporations do when they go bankrupt. GM and Chrysler just did it, and the airlines will do it next time they go bust. Same for the hundreds of other companies that go broke every year.
