By Ben Cohen
The Nobel Prize winning economist doesn’t think much of Obama’s bank bailout:
The Obama administration’s $500 billion or more proposal to deal with
America’s ailing banks has been described by some in the financial
markets as a win-win-win proposal. Actually, it is a win-win-lose
proposal: the banks win, investors win — and taxpayers lose.
Treasury hopes to get us out of the mess by replicating the flawed
system that the private sector used to bring the world crashing down,
with a proposal marked by overleveraging in the public sector,
excessive complexity, poor incentives and a lack of transparency.
It looks like Europe feels the same way.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.