Here's how the 'out and price' summit would work: Nations, via law or emergency powers, would force all holders of mortgage backed securities to surrender these assets, in exchange for a temporary, preliminary price, Wang said. Central banks of these nations would then meet to establish an international body to systematically price these assets, with the former asset owners' compensation increased or decreased, based on fair market value, once that is determined.

"The goal and effect would be to get these toxic assets out of system - - to cleanse the financial system - - and I believe this will substantially reduce the uncertainty and fear in the system, which will promote a restoration of lending and lower overnight interest rates," Wang said. "Others may argue it's not the best way to arrive at price discovery for these assets, but I would argue the benefits far exceed the costs, given the risk these toxic assets pose to the global financial system."

"As I said earlier, traditional tools will not be sufficient to end this crisis. We need to innovate to solve it," Wang said.

Financial System / Economic Analysis: Once considered a stretch, establishing a global body to remove and price toxic assets may have to be considered, if the financial crisis continues to worsen. Fear is at the core of banks' unwillingness to lend - - no one trusts what the other bank holds - - and the inability to both identify and determine the price of toxic assets is at the core of that fear. An 'out and price' summit and accompanying international pricing institution is something leaders of the world's major economies have to consider.