Yikes. Krugman Hates “The Plan”
Allow me to summarize what Paul Krugman has to say about the proposed Bush bailout: It Sucks.
Among his points: That a $700 “bailout” basically consists of the government buying up $700 billion dollars in bad assets (i.e., mortgage back securities). Krugman believes that while that may, emphasis “may”, break the cycle of deleveraging going on on Wall Street, that the real solution is to provide more capital to the system. Under this idea if we are to be providing capital to Wall Street we should get an “ownership” share so that if the plan does work the gains don’t just go to the people who made this mess in the first place.
Interesting point.
Full article here.
Problems is, see this post, here.
