Weird Times

I don’t remember a US Presidential Election campaign that was so overshadowed by such politico-economic upheaval during the last 6 weeks. Who was actually listening to what McCain and Obama were saying last week ? Who actually believed that one would be better equipped than the other to get things under control !?

As usual, some of the best stuff about this topic is on Krugman’s blog. I am quoting:

“The Treasury plan, by contrast, looks like an attempt to restore confidence in the financial system — that is, convince creditors of troubled institutions that everything’s OK — simply by buying assets off these institutions. This will only work if the prices Treasury pays are much higher than current market prices; that, in turn, can only be true either if this is mainly a liquidity problem — which seems doubtful — or if Treasury is going to be paying a huge premium, in effect throwing taxpayers’ money at the financial world.”

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