Notes on the Bailout
2) Assume for a moment that the claims of panic driving down the value of assets are right, this bill isn't the right way to solve the problem. Other more direct reforms would be to get rid of the government accounting regulations. Or providing temporary bridge loans as opposed to having the government have to buy all these assets.
3) Not clear that it is needed. The claim about panic driving down the value of assets doesn't make a lot of sense. We keep on hearing that these assets are actually below their real value and that the government will make money buying these assets now and reselling them later. If so, why won't private parties around the world see the same profit opportunities?
4) Why would we be bailing out foreign financial institutions?