Alan Greenspan Needs Stockholm Syndrome
July 09, 2010
Ezra Klein has been doing some great blogging from the Aspen Ideas Festival, which is indeed full of ideas--some good, some not so good. Into the latter category I would put some remarks by former Federal Reserve Chairman Alan Greenspan, as relayed by Ezra today: Coming to the issue of taxes, this gets to the more fundamental issue of the effects of taxation and spending cuts. There are several studies out there evaluating past efforts at fiscal restraint that show the heavy weight of successful contraction has been on the spending side.
Wait, Is Gaming The Geithner Plan Necessarily A Bad Thing?
April 06, 2009
In a piece today on The Huffington Post, Jeff Sachs conjures up another seemingly gruesome gaming scenario: Suppose, however, that Citibank itself sets up a Citibank Public-Private Investment Fund (CPPIF) under the Geithner-Summers plan. The CPPIF will bid the full face value of $1 million for the worthless asset, because it can borrow $850K from the FDIC, and get $75K from the Treasury, to make the purchase! Citibank will only have to put in $75K of the total.