Let Detroit fail

The idea of a Detroit bailout has all the liberal economists I know (including myself) feeling and sounding like Republicans: Let the free market decide!
No, markets aren’t perfect.  But the best way to deal with their failings is to hedge against and/or compensate for them, not attempt to prevent them via direct intervention.  If the [...]

Would a Green WPA leave women out?

Linda Hirshman considers what Obama’s WPA-like proposal would mean for women:
Mr. Obama compared his infrastructure plan to the Eisenhower-era construction of the Interstate System of highways. It brings back the Eisenhower era in a less appealing way as well: there are almost no women on this road to recovery.
Back before the feminist revolution brought women [...]

Great Depression II

From someecards.com:

Socialized finance

From Howard Gleckman, over at TaxVox:
So, the Fed and the Bush Administration have now nationalized a $1 trillion company, just a few weeks after rescuing mortgage giants Fannie Mae and Freddie Mac, and a few months after bailing out Bear Stearns. I can’t help but wonder, who has nationalized more assets in the last six [...]

But he hasn’t spoken with Keating since!

John McCain has a new ad out touting the “experience” he and Sarah Palin have that will help get us out of the giant–and rapidly growing–economic and financial mess we’re in.  But he doesn’t actually say what that experience includes, and he’s certainly never claimed to be an expert on the economy.  Joe Klein fills [...]

No more moral hazard

Thankfully, it appears there is a line:
After a marathon series of negotiations over the weekend, Federal Reserve and the Treasury stepped aside to allow a wrenching transformation of Wall Street to proceed. Having galloped to the rescue of other major financial institutions in recent months, the federal government drew the line with Lehman Brothers, ignoring [...]

Fannie & Freddie

A good question for John McCain: If you really favor small government, will you dismantle Fannie Mae & Freddie Mac upon taking office?  And if so, what should happen to the millions of Americans who count on these institutions for home loans?
If not, how do we know you aren’t just another “spend but don’t tax” [...]