More damaging, however, is the fact that it places him outside of the mainstream in free bankingcircles and squanders his remaining quasi-libertarian credibility as a champion of markets.
The idea is being floated in political and bankingcircles that a NAMA-style "bad bank" - similar to the model established in the Republic of Ireland - could be set up to remove these debts in the hope that this might free up bank lending once again.