Plan B: Flood Banks with Cash

Plan A, it seems to me, was to commandeer the lifeboats before yelling “Every man for himself.”

Who knows? Maybe they’re right this week. As the watertight compartments continue to flood, maybe more water is the answer.


from The New York Times

It may be time to try a new approach, and perhaps to abandon the announced details of the bailout plan passed by Congress with such difficulty only a week ago. The government needs to decide which banks it is sure are worth saving, and pump capital into them directly.

Treasury Secretary Henry M. Paulson Jr. indicated this week that he was considering such an approach, which would be much simpler and could be much more effective.”

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