Some readers have asked how a private/public partnership to remove toxic assets from banks’ balance sheets would actually work. Much has been written about it, although not always in understandable terms.
Hat tip goes to Mish at Global Economics for pointing to the following video, which attempts to clarify the details of its implementation. You will probably be as surprised as I was to find out who would potentially invest in such a scheme.
Take a look. The video is about 12 minutes long, but well worth the time to better understand the concept: