I found this very clear explanation of the various alternatives for dealing with the toxic assets that litter the banks. It is by Mark Thoma of the University of Oregon:Economist’s View: Government Intervention in the Market for Toxic Cars The key point to keep in mind is the objective. We are trying to rebuild the […]

At the end of last week the Congressional Budget Office released analysis of the impact Obama’s proposed budget would have on the Federal Deficit. the headlines blared comments about $2 trillion deficits. Here’s the CBO report: Director’s Blog Archive – Preliminary Analysis of the President’s Budget The issue to bear in mind when thinking about […]

The asset rescue plan that will be unveiled by this week has already been leaked sufficiently that we can decide whether it is any good. The answer is, I am afraid, that is a bad plan. Rubbish in fact. I have mentioned before that it seems the administration has a much more benign view of […]