Timothy Geithner has announced his bank rescue plan, which seems to amount to the government buying horrible assets from banks at grossly inflated prices. Over at the Times, they have several prominent economists, including Krugman, on whether the plan will work (verdict: it depends, but probably not..
Timothy Geithner has announced his bank rescue plan, which seems to amount to the government buying horrible assets from banks at grossly inflated prices. Over at the Times, they have several prominent economists, including Krugman, on whether the plan will work (verdict: it depends, but probably not so much). The stock market is sure excited about it though.Just be prepared, your tax dollars will be paying for other people's mistakes, which sort of sounds like a nice, pithy condensation of conservative complaints about big government. That said, if it works, it will save us money in the long run-though studies show that people are willing to take a financial hit to punish people they feel are benefiting unfairly. Maybe they're interested in a longer recession to show some investment bankers who's boss?Image via.
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