Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. Why Bail?--Dean BakerFrom Huffington Post, by Dean Baker of the Center for Economic Policy and Research.The Banks Have a Gun Pointed at Their Head and Are Threatening to Pull the Trigger If you have a real story, you don't have to make up phony stories. That's pretty straightforward. I've heard lots of phony stories. Much of the country's political and economic leadership has been running around raising the prospect of the Great Depression and a breakdown in the banking system (I actually had taken the latter seriously). These stories are absolutely not true. There is no plausible scenario under which the no bailout scenario gives us a Great Depression. There is a more plausible scenario (but highly unlikely) that the bailout will give us a Great Depression. There is no way that the failure to do a bailout will lead to more than a very brief failure of the financial system. We will not lose our modern system of payments. At this point I cannot identify a single good reason to do the bailout. Read the rest of the article. Labels: bailout, Center for Economic and Policy Research, Dean Baker, financial crisis Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!). |
