As I noted a few days ago, Paulson’s bailout was the worst possible way to do a bad thing. To the extent that the government had to inject money into the financial system, I explained, it would have been far better to use the “FDIC Resolution” approach, which at least addresses the moral hazard issue [...]
Archive for the ‘Paulson’ Category
Volcker Is Right about “Resolution Authority”
Posted in Bailout, Financial Crisis, Moral Hazard, Paulson, tagged Bailouts, Financial Crisis, Moral Hazard, Paulson, Volcker on February 1, 2010 | 9 Comments »
Paulson Should Just Go Away
Posted in Bailout, Financial Crisis, Paulson, tagged Bailout, Financial Crisis, Paulson on January 29, 2010 | 5 Comments »
Like most statists and interventionists, former Treasury Secretary Henry Paulson raises the economic equivalent of monsters under the bed when justifying more government. Here’s a blurb from a story about his recent testimony on Capitol Hill: …former Treasury Secretary Henry Paulson on Wednesday defended his decision to complete a $182 billion bailout of American International [...]
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