For the record, I support a bailout, but with $700 billion on the line I think it is extremely important that it is done right. Several University of Chicago economists have proposed improvements to the plan.
I also don't think the bailout will solve the financial crisis, but I think it will help. Bernanke and Paulson (or their successors) will likely be going back to Congress begging for more help in the future.
To put things in perspective, $700 billion is about $2,304 for every man, woman, and child in America. Hopefully, however, the Treasury would be buying assets worth roughly the same amount, so it wouldn't be $2,304 out of pocket for American taxpayers.
The Paulson bailout isn't enough. It is ridiculous that the government is planning to spend $700 billion to bail out the financial system when bank regulators haven't even taken the simple step of requiring banks to preserve capital by suspending dividend payments.
How do Bubble Meter readers feel about the bailout?
Saturday, September 27, 2008
Subscribe to:
Post Comments (Atom)
Posts
