online.wsj.com - 2/21/2009
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WILLEM H. BUITER Treasury Secretary Tim Geithner's bank rescue -- the Financial Stability Plan (FSP) -- has been poorly received by the markets. My proposal last month to create brand new "good banks" with the limited taxpayer resources available is the best solution to the crisis. One reason ...
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links for 2009-02-21
Economist's View —
Nationalization fears - Paul Krugman
White House Says Banks Should Stay Private - naked capitalism
Nationalization, schmationalization - Andrew Leonard
Good Banks' Are Cost Effective Way Out of Financial Crisis - Willem Buiter
Stimulus Says ‘Buy America.’ Good Luck With That. - NYTimes.com
Rising Worries on Rescue Roil Banks’ Shares - NYTimes.com
Stiglitz: Too Little, Too Late (but Better Than Nothing) - Public Offering
The Lucas Critique ...
Buiter's Solution
Greg Mankiw's Blog —
LSE economist Willem Buiter wants to create new banks.
More on That Dirty Word "Nationalization" and Possible Approaches
naked capitalism —
... What remedies or alternatives might there be? Could the trading ops be segregated with a government backstop to be kept going, and the other non-trading capital markets businesses (prime brokerage, asset management, prop trading, etc) be put into receivership? What are the issues here, regulatory and practical? (This is one reason why Willem Buiter's "good bank" model does not seem applicable to these firms, unless you want to see the investment banking rump of Citi and the former Merrilll go into a Lehman style collapse). ...
Links 2/22/09
naked capitalism —
... hat tip reader Michael T). Look for the way the gendame catches Garabaldi. Surveillance cams help fight crime, city says Chicago Sun-Times. Big Brother is coming to the Midwest. Check the Numbers: The Case for Due Diligence in Policy Formation Fraser Institute (hat tip Felix Salmon) Radical revamp splits RBS in two Times Online The Complete Biggest Losers! Clusterstock. While Rome Burns Ed Harrison 'Good Banks' Are the Cost Effective Way Out of the Financial Crisis Willem Buiter Wall Street ...
Late Starter
Economic Principals —
... This “good bank” plan was broached independently and more or less simultaneously a month ago by Willem Buiter, of the London School of Economics, and ...
This is the Way to Deal With the Banks
The Bonddad Blog —
From the WSJ: Given the limited scope U.S. authorities have for increasing the public debt burden without adverse asset market responses, it is best to forget about tax cuts or public spending increases. Instead, the available fiscal resources should be focused on restoring the flow of credit to nonfinancial enterprises and, to a lesser extent, to households (most of which are already over-indebted and should not be encouraged to spend more). Rather than wasting the $1.4 trillion of public funds it would take to restore (according to NYU economist ...
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The Bureau of Economic Analysis reported today that U.S. real GDP fell at a ...
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