| My $0.02 The Good: A non trivial part of the market freeze was due to the uncertainty about the bailout. Will it pass and if so at exactly what price will the Feds buy the toxic junk.
Rather then sell, people were waiting. Perhaps now things can start moving again. So this may be better then doing nothing. The Bad: The may be worse then doing nothing. We may spend a whole lot of money and not make a profit on it. Steal (by inflation) from all the people who save, to give to the bankers, and the bankers could still fail. Many experts argue a better alternative would have been to pick a few winners re-capitalize them and then let everyone else fail. The core issue here is solvency not liquidity, the bailout addresses liquidity, which many consider just a symptom, not the disease. More may have to be done, like re-capitalization, yet more may not be done because while this time there are no pitch forks in DC, there may well be next time. And thus, this could be worse the doing nothing. 'Ain't economics fun. |