In a weekend, they came up with this plan, Paulson and Bernanke.
It will be with them, long after they are not with us.
I wouldn't have gambled my legacy on this plan. Just saying.
Why?
Well, it's not robust, technically speaking. It may be enough to "work". Other approaches will work.
After that, they didn't get what they set out to achieve. They have not restored the safety and soundness of the system. They've treated symptoms. It's not clear that we have more transparency and a shored-up system that can provide both increased transparency alongside improvements in risk-bearing (including the careful elimination of "too big to fail"?).
Sunday, September 28, 2008
Bernanke's Place in History Sealed with Fate of Slush-Fund Approach
