Some Experts Say Rescue Program Might Not Work

[ArchieStone1]

By Binyamin Appelbaum Washington Post Staff Writer Tuesday, March 24, 2009; Page A06

Investors may have cheered the administration's latest financial bailout plan yesterday, but a chorus of academics and financial experts expressed skepticism, saying there are better ways to restore the health of the banking system.

Some warned that the new plan will likely fail, or fall short, because banks will demand higher prices than investors are willing to pay.

There was also widespread agreement that the Obama administration, like its predecessor, has not done enough to explain its choice of a fraught and controversial approach.

"I think we suffer from the lack of a fuller explanation. I think they would inspire much more confidence if they explained their rationale," said Hal Scott, a Harvard Law School professor who specializes in financial systems.

More: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/23/AR2009032302808.html

[lamp_shade]

1. Every academic and financial expert on this planet has their own pet solution. EOM.

[sharp_stick]

2. No matter the program offered

you will always find "some experts say rescue program might not work". I don't know of many fields more ideologically split than economics, it's almost as bad as politics. Half the time the RW, Centrist and LW Economists don't even read the other's opinions before putting out damning indictments, they just look for the usual buzzwords.

This is going to take a long time before we figure out if it works and even if it does the "some experts" now saying it might not work will probably be slamming it for costing too much, not giving the taxpayer enough or one of a million other reasons.

I think I may have to just be done with the whole topic, here and outside, for at lease several weeks so that "some experts" on all sides can exhaust themselves into blissfull silence for awhile.

[HubertHeaver]

3. It was the "experts" who got us into this mess. N/T

[Jim Sagle]

6. There are TWO SETS of experts:

1) the ones who got us into this mess; and
2) the ones who repeatedly warned that we were getting into a mess, and were being studiously ignored.

The ones who got us into this mess are the ones Obama appointed to fix it.

The ones who repeatedly warned that we were getting into a mess, and were being studiously ignored, are STILL being studiously ignored.

That's because Obama and his crew have no intention of fixing anything. Their clear intention, based on actions taken thus far, is to seize all the money in the world.

[Miss Authoritiva]

4. My declaration...

We shall see. Eventually, we will know for sure. There. That's it. That's my declaration.

My opinion is that this plan may move around some of the toxic assets a little bit, but I don't see it solving The Top Ten Problems of the US Financial System and Economy. If I were president, I would have taken bolder and more decisive steps and sooner -- hacked, slashed, clawed, closed down, and taken into receivership some of these shadow-banking behemoths and updated and reinstalled Glass-Steagall etc, etc. But I'm not president, so.... we shall see.

[Puzzler]

5. Ah yes, the ubiquitous "Some Say".

.