Wall Street Bailout
September 26, 2008
The charts above put the size of Paulson’s $700 billion rescue plan into perspective. Given that $700 billion is small relative to the total assets of all FDIC insured institutions, the design of the bailout will be at least as important as the size. Government money may have more impact if it is used to bolster banks’ capital rather than to bolster their assets. The following articles capture some of the debates around the bailout plan.
Samuelson: What’s the True Cost?
Setser: Math on the Financial Sector
Wolf: Paulson’s Plan
Soros: Paulson Can’t be Allowed a Blank Cheque
Gross: How Main Street Will Profit
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