That Flip-Flop Didn't Take Long
September 16, 2008: Larry Kudlow praises Henry Paulson for his "courageous" opposition to bail-outs.
September 24, 2008: Larry Kudlow praises Henry Paulson for his bail-out plan.
Kudlow flip-flops almost as fast as Paulson himself on the bail-out issue, in other words. The only consistent idea that Kudlow holds appears to be that what Henry Paulson says is the right thing.
Meanwhile, Paul Krugman of all people has written a really good post on the bail-out issue.
September 24, 2008: Larry Kudlow praises Henry Paulson for his bail-out plan.
Kudlow flip-flops almost as fast as Paulson himself on the bail-out issue, in other words. The only consistent idea that Kudlow holds appears to be that what Henry Paulson says is the right thing.
Meanwhile, Paul Krugman of all people has written a really good post on the bail-out issue.
posted by stefankarlsson at 10:46 AM
2 Comments:
It's incomprehensible to me why Paulson wants to just give away the money.
The Dodd Plan clearly has provisions about the government taking a stake (what Krugman refers to as "equity warrants").
Krugman's last point about the rest of the bad debt iceberg that is likely to impact as house prices continue to drop into 2009 and 2010 and how this package does not address that is particularly potent.
But then Paulson just needs to keep this ship from sinking until January 2009 when it becomes somebody else's problem.
Paulson's official argument is that if the terms aren't generous enough, some firms might not want to sell their bad assets to the Treasury.
Many of us however suspect that the real motive might be related to the fact that he used to be CEO at Goldman Sachs and thus have strong ties to that company...
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