Wednesday, November 12, 2008

Bailout verdict: Epic fail

Creditors win, taxpayers lose. Pretty simple, but it's nice to have economic experts saying so.


  1. The analysis is a little more nuanced than your short description portrays. Here are two interesting quotes:

    "These results do not allow us to conclude that the plan was useless: it could have succeeded in helping the economy through other channels, for instance by stopping investors’ panic."

    "We find that the revised Paulson plan is the most expensive for the taxpayers, but it limits the value at risk and the Government ownership of banks."

    The latter quote implies trade offs inherent in any policy.

    Also, inaction could have made things a lot worse. Look at Iceland for an idea of how bad it could get.

  2. @Sean:
    It's all steamer. But giving more money to proven losers smacks of insanity.