The Dallas Federal Reserve Bank President, Former Treasury Secretary, Head of the Congressional Budget Office and Leading Economists All Slam Bailout → Washingtons Blog
The Dallas Federal Reserve Bank President, Former Treasury Secretary, Head of the Congressional Budget Office and Leading Economists All Slam Bailout - Washingtons Blog

Thursday, September 25, 2008

The Dallas Federal Reserve Bank President, Former Treasury Secretary, Head of the Congressional Budget Office and Leading Economists All Slam Bailout

The following experts have slammed the bailout:

  • The former head of the Fed's open market operation - the key Federal Reserve program which loans hundreds of billions of dollars to Wall Street companies and banks - said the bailout could make matters worse: "Every time you tinker with this delicate system even small changes can create big ripples . . . . The risks are that the government's $700 billion purchase of assets disturbs markets even more.''
  • A prominent economist (Nouriel Roubini) says "The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown."

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