Sunday, September 21, 2008

"Why You Should Hate the Treasury Bailout Proposal"



Given that continuing to buy US assets will come under increasingly harsh scrutiny overseas, the US needs to bend over backwards to devise a plan that at least looks credible in terms of directing the funds that come from taxpayers and lenders to their highest and best uses and implementing reforms that will restore active and prudent oversight of financial firms. The Administration's demand for a free pass, even if Congress unwisely goes along, is likely to backfire with our foreign creditors.

See also this Yahoo News piece which rounds up all kinds of skeptical opinions expressed by economists.

The NYT also has a couple of good pieces.

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