News
More Bad Medicine
Looks like Treasury will be dosing out more bailout money...to supposedly "healthy" banks. HA! Jeffrey Miron of Harvard gets it though in his review. "Why this bailout is as bad as the last one."
http://www.cnn.com/2008/POLITICS/10/14/miron.banks/index.html
"Perhaps the new cash will spur the sale of bad assets, or nudge banks to reveal their balance sheets, but that is far from obvious. Banks, moreover, might remain cautious even with this increased liquidity simply because of uncertainty about the economy. Thus it is hard to know whether cash injections will actually spur bank lending.
In any event, government ownership of banks has frightening long-term implications, whether or not it alleviates the credit crunch."


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