I talked to a couple of friends who weren’t as alarmed by Fortis as Kristol’s guys. They seem to think the problem there is contained. Who knows? But they both endorse some version of these two proposals in Bill’s post:
1. Giving the FDIC authority to provide unlimited deposit insurance through the FDIC for transaction accounts in banks.
2. Authorizing the Secretary of the Treasury to provide unlimited protection of principal in money market funds through the Treasury’s exchange stabilization fund.