Sunday, September 28, 2008

Krugman Approves Of Swedish Plan

Paul Krugman supports the Swedish Plan, as does Brad DeLong:

"Brad DeLong says that Swedish-style temporary nationalization is the right answer to a financial crisis; he’s right. I haven’t been clear enough about this, it seems, but it’s where my basic diagnosis leads: the problem is insufficient capital, you want to inject capital, but you don’t want it to be a windfall to existing stockholders — hence, take over and recapitalize the failing firms. By the way, that’s what we did with AIG 10 years days ago. "

It's not going anywhere, but I agree with them.

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