09-29-2008, 04:23 PM
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#149
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Franchise Player
Join Date: Mar 2007
Location: Victoria, BC
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Libertarian Harvard economist argues against the bailout...The US needs more people like this IMO.
Talk of Armageddon, however, is ridiculous scare-mongering. If financial institutions cannot make productive loans, a profit opportunity exists for someone else. This might not happen instantly, but it will happen.
Further, the current credit freeze is likely due to Wall Street's hope of a bailout; bankers will not sell their lousy assets for 20 cents on the dollar if the government might pay 30, 50, or 80 cents.
The costs of the bailout, moreover, are almost certainly being understated. The administration's claim is that many mortgage assets are merely illiquid, not truly worthless, implying taxpayers will recoup much of their $700 billion.
http://www.cnn.com/2008/POLITICS/09/...out/index.html
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