Spend in haste, repent at leisure: America’s latest bailout plan
The Treasury's rescue plan is misguided, because, unlike in the 1930's, the US faces a hypertrophied financial system. Rather than causing a Great Depression, significant shrinkage of the financial sector, particularly if facilitated by an improved regulatory structure, might actually enhance efficiency and growth.
https://prosyn.org/pDHufM8
Cambridge – With minds concentrated by fears of another 1930’s-style Great Depression, America’s politicians have adopted, virtually overnight, a $700 billon bailout plan to resuscitate the country’s rapidly deflating financial sector. The final deal is an elaborate piece of financial and political engineering whose ultimate effect is almost impossible to predict. There are good reasons, however, to be skeptical that this will be the panacea that credit markets are (literally) banking on.