Unbiased Analysis of Today's Healthcare Issues
On Thursday I blogged that fiscal stimulus and bail outs may improve economic performance in the short run, but rarely in the long run. Often these bailouts are accompanied by mandatory salary decreases for key company leadership. It turns out that these bailouts may not even help in the short run…unless you are a company…
What is AIG doing with the bailout money it has received from the federal government? The Wall Street Journal reports that AIG is “…using taxpayer money in its effort to soften new federal controls over the mortgage industry.”
President Bush’s speech tonight urged Americans to side with the Bush-Bernanke-Paulson worldview that a bailout is the only option. Is it the only option? Luigi Zingales believes Henry Paulson’s decision to bail out Wall Street is a mistake. Most economists agree that the government won’t get a “deal” when negotiating the price of risky assets. “In…
In an attempt to stabilize the economy, the U.S. government has taken some significant actions. Let’s recount. The government has taken over Fannie Mae and Freddie Mac. Combined assets: $5 trillion. The government has “rescued” Bear Stearns by backstopping questionable assets valued at $29 billion. The government has given a loan to AIG for $85…