Posted by: Michael Mandel on September 29
I may regret saying this, but the Paulson plan was bad, just bad. As Peter Coy wrote in this week’s issue, this was not the best way to spend $700 billion. The Paulson plan had virtually no support from economists.
Now it’s time to come up with a real plan. The Galbraith plan is a good start, but anything which actually supports the financial system would work as well.
As for today’s drop in the stock market—well, now investors are finally coming back to reality. We were at this level in 2005, while everyone was still fat and happy with the real estate boom. (right now the S&P500 is at 1141, just where it was in April 2005).
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.