Rational economist Brad DeLong has it, with appropriate snark where it is needed.
Then on the other hand Krugman fires back that DeLong is over-optimistic about the value of those securities. He calls it just a bigger variant of Hank Paulson's old plan, the one Paulson jettisoned when it became clear that it would not work.
Then on the third hand...
This penguin is going to continue munching on the popcorn while watching the reputable economists (as vs. the Chicago School hacks) squabble over this thing. May the best hand win!
-- Badtux the Economics Penguin
I think the taxpayers, and the taxpayers alone, are going to be screwed royally either way this fiasco plays out.
ReplyDeleteAll those in Congress who have received campaign funds from the financial market will make sure their money people come out of this just fine.
If this was a movie it would be entertaining, unfortunately it isn't and we get to watch real people pay for the incompetence and arrogance of those who rarely know what they are talking about when it comes to real life decisions. While they decide which news show to appear on, Joe the real plumber is deciding between Top Ramen and Maruchan.
ReplyDeletePass the popcorn and I'll get out a couple brews whilst they argue it out .
ReplyDeletew3ski
Unfortunately, we're just going to be worse off than when we started by the time Geithner figures this out. The problem is that Geithner, et al, can't admit that the financial sector has already failed -- I'd call it a failure, for example, that AIG would not exist today if it hadn't gotten $170 billion of our money. Too big to fail? If it's too big to fail, it's too big to be in private hands, I'd say.
ReplyDeleteThere's a big difference between rescuing the banks and rescuing the executives and shareholders, and Geithner has cast his lot with the latter. That can only be disastrous, because it does nothing for you and me and the rest of the "little people" who have to live in the world the big boys leave us. And they are messing it up bad.
This thing will eventually get fixed. We can either do it the hard way, or wait til later and do it the excruciatingly painful way. So far, Geithner is choosing the excruciatingly painful, and our president seems content to let him.