Krugman: Bailout 'pulled us back from the brink'
Source: Investment News
Since the Emergency Economic Stabilization Act was passed on Oct. 3, the economic picture remains “spectacularly murky,” but financial services indicators are looking “better than they did one month ago,” according to Paul Krugman, the winner of the 2008 Nobel Memorial Prize in Economic Science.
“We've had a 107 degree fever and it’s down to 103,” he said Friday at a press conference in New York. “ pulled us back from the brink." Now, Mr. Krugman said, the focus is shifting toward supporting the real economy and creating a fiscal stimulus plan.
The Department of the Treasury’s decision not to use part of the $700 billion Troubled Asset Relief Program to repurchase bad mortgage assets is an improvement on the original plan, he said, noting that it is “extremely hard” to find a mechanism that would work.
“They started off on the wrong foot and changed,” said Mr. Krugman, who is also a columnist for The New York Times and a professor of economics and international affairs at the Woodrow Wilson School of Public and International Affairs at Princeton (N.J.) University. “They should have had a well-thought-out plan. is better.”
LinkHere
Since the Emergency Economic Stabilization Act was passed on Oct. 3, the economic picture remains “spectacularly murky,” but financial services indicators are looking “better than they did one month ago,” according to Paul Krugman, the winner of the 2008 Nobel Memorial Prize in Economic Science.
“We've had a 107 degree fever and it’s down to 103,” he said Friday at a press conference in New York. “ pulled us back from the brink." Now, Mr. Krugman said, the focus is shifting toward supporting the real economy and creating a fiscal stimulus plan.
The Department of the Treasury’s decision not to use part of the $700 billion Troubled Asset Relief Program to repurchase bad mortgage assets is an improvement on the original plan, he said, noting that it is “extremely hard” to find a mechanism that would work.
“They started off on the wrong foot and changed,” said Mr. Krugman, who is also a columnist for The New York Times and a professor of economics and international affairs at the Woodrow Wilson School of Public and International Affairs at Princeton (N.J.) University. “They should have had a well-thought-out plan. is better.”
LinkHere
posted by Kangaroo Brisbane Australia at 4:39 PM
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