Hundreds of Economists Urge Congress Not to Rush on Rescue Plan

Posted on September 25, 2008

Here’s a good article from Bloomberg about economists’ reaction to the rescue plan:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNKGD.bJwmRA&refer=home

I am particularly intrigued by this quote:

Advocates for a rescue plan this week point to a seizing up of credit markets, reflected in elevated inter-bank lending rates, as reason for action. Some economists are unconvinced.

“I suspect that part of what we’re seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,'’ said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.

Comments and Discussions

The section below is intended to serve as a forum for intellectual debate about particular investment ideas or theories. Please refer to this section for any updates on a particular investment idea. If you have your own thoughts, please feel free to add them. We appreciate your feedback.

If you would like to make a comment, please fill out the form below. Please note that we only require an email for editing purposes. We will NEVER publish your email or use it in any way.

Subscribe for FREE

Enter your email below to receive free research summaries.

RSS Feeds:

Quick Links

Recent Comments:

Yehuda Hi Thomas, "the obvious way to modify a mortgage is to leave the principal alone, stretch out the... >>Read More

Thomas J. Costagliola Yehuda, Maybe it is just me, but it seems that the obvious way to modify a mortgage... >>Read More

Thanks Appreciate your reply. Perhaps the challenge of estimating the degree to which given expectations... >>Read More

Yehuda Fruchter I agree, "better than expected", which is why it is important to only look at distressed... >>Read More

Thanks Thanks. The quote is a great reminder of Lynch's approach. Should it be qualified somewhat: "If... >>Read More

Disclaimer:
This site may include market analysis and we may own shares in the stocks mentioned in our reports. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.