Advice from Japan....

Kenichi Ohmae has an article here in the FT about Japan's experience under similar circumstances. He says THREE phases: 1) liquidity crisis 2) sorting the banks 3) massive operating company failure. Reading this makes me believe again Paulson is viewing this 800B as the first round to buy the crap off the Reserve's balance sheet from the term loans (the foot in the door), the next round being cash-for-equity after the gov assesses what the banks are hiding.