S&L; Crisis

The solution to the savings and loan junk bond crisis is not that difficult. Just make possible a marketplace reversal.

The government should set a five- to seven-year window during which period dividends would be deductible to corporations. Corporations would then be in a position to exchange debt for equity and permit stockholders a return on their investment without requiring them to sell their stake in the company.

If capital gains taxes were reinstated, the process of economic health would be accelerated. Corporate performance would once again be evaluated on profitability and not on takeover speculation.

ROBERT A. FINKELSTEIN

Beverly Hills