Professor Vernon Smith authored an op-ed, entitled “There’s No Easy Way Out of the Bubble,” published in the Wall Street Journal. Professor Smith’s article discusses the crash in the housing market and the subsequent federal bailout, where he proposed, “Treasury action should focus on providing capital to individual banks and mortgage companies in return for debt, convertible bonds and equity and warrants to be negotiated.  Then let companies do any necessary piecemeal paper asset auctions, while Treasury holds managers accountable.”  He added, “Would the procedure work? I don’t know. But it does focus on the knowledge that markets are capable of bringing to the table.  The bailout does not.”  Read article…