Wednesday, September 24, 2008

Alternatives to the $700B Paulson-Bernanke Fund

The Washington Post presents a good summary of other solutions to the Wall Street crisis that have been proposed by economists. This is refreshing. I've confessed my ignorance of what to do before on this blog, but I feel like I know enough to acknowledge a good proposal when I hear one - and I liked all of these (just couldn't come up with them myself!). I especially like the idea of an investment fund that the Post suggests. It's the most similar to the Bush plan, which the president should like. It can be a permanent fixture to help in future crises like this (and issue that Sen. Bayh made a big deal about in yesterday's Senate hearing), and it injects capital without letting banks off the hook for bad loans. Now, that of course opens the possibility that bank failures won't stop with this investment fund - but they should hurt the economy less (I believe that's the right way to think about it...).
In other news, I think Paul Krugman volunteered to be Obama's Treasury Secretary today... still a little hazy on that one.
A Washington Post-ABC poll gives Obama a 9 point lead among likely voters, but because of the Electoral College system, I'm not sure how that translates into his actual changes. The race remains close in several very important states.
One race that is not close is the Virginia Senate race, where Warner leads Gilmore by 30 points!

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