It won’t work that way, that won’t do anyone any favors. The...

It won’t work that way, that won’t do anyone any favors. The best thing the government could do is inject capital as part of their economic stimulus package for long term gain and benefit. That way the banks would get their money and the mines and company can keep ticking over.

Convert the debt to shares for the government, and then sell the shares back to the public at a later date. IMO, I think this would be the best option for all concerned.

Then later on, if it all turns to jelly, the assets could be sold off and the government could recoup most of its money it invested.