Lost in all the huffing and puffing over the Geithner Plan and those bonuses is the simple but certain problem that the regulators faced back when AIG tottered towards failure: the US, unlike most other countries, has no legal framework for dealing with the public winding up of a non-bank financial company at the Federal […]

This debate at the New York Times is worth reading and following. It gives an insight into the way that some top economists are viewing the problems that ail the banking system, and the likelihood of the Geithner plan solving those problems. The participants are Krugman, DeLong, Thoma, and Johnson, all of whom maintain solid […]

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 […]