In the case of AIG, would it make sense to open the code to the public, i.e. open up the books of the CDS, and then let teams of experts suggest solutions?
You don't think some smart unemployed people, or ambitious newly minted MBA's wouldn't be able to come up with some solutions that don't cost millions in bonuses paid to the guys who may or may not have been part of the problem?*
My less wild idea would be for the government to have hired a new team of people to take over, pay them bonuses or whatever, and then transition. I don't think people would mind paying experts top dollar to fix the problems. Its that the "experts" were the ones who employed when the mess was made.
Its like your car mechanic admitting that he installed bum gaskets in your car, and offering to replace them, but you'd have to pay parts and labor again.
*Of course, the big problems are that CDS were not just sold to the counterparties in an exchange, but to anybody wishing to place a bet on a company and that we're in a situation where more of these contracts are being called in than anticipated...maybe not such easily forseeable situations.
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