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koganbotDean Baker opposes the bailout, thinks we're better without it than with it.
Paul Krugman thinks the bailout is necessary, and that this relatively poor bill is nonetheless likely the best the Dems could get.
I think Setser and DeLong think, like Krugman but unlike Baker, that something must be done, though I don't know their opinion on the specific bill that was unveiled this morning.
Meanwhile, four major bailouts/takeovers/nationalizations in Europe and one in the U.S. in the last 24 hours.
And the 1-month t-bill is at 0.04%, TED spread at 3.5. I have little idea what that means, but people who do are gaping in astonishment.
Paul Krugman thinks the bailout is necessary, and that this relatively poor bill is nonetheless likely the best the Dems could get.
I think Setser and DeLong think, like Krugman but unlike Baker, that something must be done, though I don't know their opinion on the specific bill that was unveiled this morning.
Meanwhile, four major bailouts/takeovers/nationalizations in Europe and one in the U.S. in the last 24 hours.
And the 1-month t-bill is at 0.04%, TED spread at 3.5. I have little idea what that means, but people who do are gaping in astonishment.
The compromises in the bailout bill
Date: 2008-09-29 05:44 pm (UTC)Ultimately, the bill gives Mr. Paulson discretion on taking equity, and executive compensation standards will only be implemented if there are direct purchases. This makes some sense, since if there is an auction or a market purchase, there is no ostensible benefit given to the corporation. However, neither a market purchase nor a reverse auction in this market is really efficient. So, perhaps this implies that Mr. Paulson will be doing this pursuant to one of these two means. Ultimately, these limitations likely mean that no corporation will be subject to these standards and the Democrats significantly retreated from their initial proposal.