Douglas W. Elmendorf of the Brookings Institution notes several problems with Paulson's plan.
Two struck me as pretty serious.
One, we really don't know how to set a fair market price on a lot of this junk so whatever the Treasury decides they are worth is subject to bias and corruption.
Second, this plan offers the most support to the institutions that made the worst judgments, so there's no accountability.
Saturday, September 20, 2008
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