Tuesday 22 May 2018 | 18:21 | SYDNEY
Tuesday 22 May 2018 | 18:21 | SYDNEY

Panning the Paulson Plan


Mark Thirlwell

23 September 2008 11:28

Well,  that didn’t take long. The boost to confidence provided by the US Treasury Secretary Hank Paulson’s bailout plan for the US financial system has turned out to be short-lived, as investors worry about the speed of negotiations over implementation, and about whether it will actually work. 

The proposal continues to draw criticism. See, for example, Paul Krugman’s latest column, Cash for Trash. Also worth a look are this post and then this one by Yves Smith, both at the Naked Capitalism blog. Meanwhile, Ken Rogoff continues to argue that the financial sector needs to shrink. Over at VoxEU, however, and as a counterpart to the Zingales post I linked to yesterday, Charles Wyplosz has an interesting comment explaining why Paulson is (maybe) right after all.

Elsewhere, Jim O’Neil in the FT writes in support of the weak version of the decoupling thesis.