Sunday, September 21, 2008

Should taxpayers pay $700 billion+ to bail out Wall Street?

Possibly it is unavoidable. But here's another opinion [.pdf] expressed strongly (via Tyler Cowen).

And here's a pretty alarming description of the "$700 billion proposal" -- ranging from how it creates an above-the-law Imperial Treasury with risk of all kinds of wrongdoing resulting, to a look at the bad economics of the deal: the Treasury paying well above-market prices for bad debt, rewarding the worst offenders among the financial players the most, at taxpayer expense (and more) ... plus the unhappy international implications.

(As note in the above, Krugman doesn't like this deal either. I haven't agreed with near anything Krugman's written for years. When I do like this, I fear there's really something to be alarmed about.)

More: Arnold Kling gives his opinion, with links to others. His blog partner, Bryan Caplan, asks "Where are the left-wing demagogues denouncing handouts to the the rich when we need them?"

The text of the proposal.