Soros weighs in as does Kaletsky. Not surprisingly they have similar views. Kaletsky has very good contact with Soros. Letting Lehman collapse was not a good idea, despite all the bloggers and pundits who'd like to see all these banks go bankrupt. That would lead to at best a Japan style stagnation and at worst another Great Depression.
2 comments:
hey moomin.
long time no see. i'm one of those anti-bailout plan bloggers. the ONLY reason i could see any reasoning for tax payers paying the bill is if that $700+ billion reflected future payments going to thousands of small businesses and people. But if it is just all mortgage payments can't the mortgagee's just refinance and another better more proven managed company take over the new refinanced mortgages at a future profit without tax payers footing a bill and getting back nothing? it just seems the news media and congress are forcing fear into American's heads so they can get million dollar kickbacks behind the scenes.
any comment?
=)
financeninja.wordpress.com
Who are they going to refinance with? Would the government buy all those mortgages and then do deals with the borrowers?
The problem is preventing collapse of the banking system which is what caused the Great Depression when 1/3 of US banks failed. I'm not sure that the Paulson plan is the most effective way of doing that. Soros doesn't think so either. But one way or another we have got to stop the system completely breaking down, which it almost effectively began to do last week.
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