A bailout won't wreck economy

News Type: Opinion — Seeded on Sun Sep 28, 2008 11:45 AM EDT

Article Source: The Times

us-news, economy, bailout, bailout-wont-wreck-the-economy

Let's try to look beyond last week's political scrap over repeated bailouts of the banking system, and consider some of the longer-term consequences of the billions that the American government has already thrown — and in the near-term will continue to throw — at America's financial institutions. Start by giving a wide berth to stories about a possible default by the government, the end of the dollar's reign as the world's reserve currency, and runaway inflation.

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{"commentId":3184660,"authorDomain":"SVForbes"}

ShaunV

The unanswered question, of course, is whether a bailout will have its intended effect of enabling the banks to start lending again. And, more important, if they can lend, whether they will indeed lend, or continue to hoard their cash. It is possible that handing over cash to the banks won't induce them to lend it. We just don't know what these increasingly skittish institutions will do.

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1 vote

#1 - Sun Sep 28, 2008 11:47 AM EDT

{"commentId":3186583,"authorDomain":"riverstomp"}

riverstomp

The Time's article is hogwash. No surprise then that Stelzer advises readers to steer clear of dissenting opinions. The bottom line is, if the assets had value there would be no push for a bailout. China rejected the assets because they are worthless; they were smart enough to recognize a bad investment when they saw one. The rhetoric that we the people are getting something worthy in return is utter rubbish and spoken only to sway public opinion.

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#2 - Sun Sep 28, 2008 2:04 PM EDT

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SHAUNV

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A bailout won't wreck economy

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