Long Beach, Ca.  Well, if we could just isolate all the bad prisoners and put them in a place that has high walls, surrounded by machine guns and moats, extra guards with tear gas we just might be safe....in the current financial world and credit crisis, that high security prison would be the new, BAD BANK.   I really like that name, it sounds cool and dangerous.  And who do you think would be the CEO, Shaft? Just kidding.

President Obama may appoint the FDIC to run a "Bad Bank" which will buy the toxic assets that are clogging up bank balance sheets, in hope that it will subsequently free up lending. The FDIC would probably issue guaranteed bonds to finance the undertaking. Stocks around the world are rallying off of the news that this plan may finally be the answer in solving the credit crisis.  After all, in the early 90's the RTC was created for all of the failed Savings and Loans.  It did work then and has a strong possibility of working again.    However, George Soros seems to think it is a bad idea. "That (the "bad bank" proposal) will help relieve the situation, but it will not be sufficient to turn it around," Soros said during a live interview at the Davos economic conference in Switzerland. Instead, Soros said he would create a "good bank" and re-capitalize the good assets.  He admitted his alternative plan is not likely to get support because it too closely approaches nationalization. "The political will to do that is not there," Sorry George, remain in Europe please. 

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