tag:blogger.com,1999:blog-5491095.post3007648435869779409..comments2024-01-09T17:16:02.647+07:00Comments on JOTMAN: From George Soros to Paul Krugman: Gordon Brown's bailout planJotmanhttp://www.blogger.com/profile/02485510513271661365noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5491095.post-70626622669695840502008-10-10T19:48:00.000+07:002008-10-10T19:48:00.000+07:00This is exactly what we need to do. From the begin...This is exactly what we need to do. From the beginning the Sweden rescue model presented the perfect guide for getting out of the current crisis with the least disruption to both the financial market and the overall economy. However, the "stock injection" model or capital injection model was never offered as a plausible alternative in the US because it smells like socialism and would be very difficult to sell politically. Of course the alternative plan that we went with to buy up all the toxic debt wasn't incredibly popular anyway and it has turned out to not be very effective as well. Now, the US treasury needs to take advantage of the language in the rescue plan which gives it the option to inject capital into banks in return for an ownership stake in the bank and we can get around to solving this crisis using the Swedish model as our guide. <BR/>We're fortunate that Great Britain is willing to suggest a rescue plan that is actually recommended by economists even if it smacks of socialism. Here in the US we are much more focussed on ideology and tend to ignore reality in our politics.Unknownhttps://www.blogger.com/profile/04499926855980653304noreply@blogger.com