Yesterday I touched the "band bank" issue, as I assumed that to be the reason for the party in the equity markets. It looks like the Republicans messed the political bed, Fed did not promise to buy long term treasuries (well, they promised to do so, if they assume it to be necessary), and the "bad bank rumor" looks like hanging in thin air, though ...
Well, here are some other opinions against the bad bank idea:
- Willem Buiter proposes the good bank solution
- The PR dept. of Oppenheimer - Meredith Whitney, here' s the CNBC video coverage, and here is the Oppenheimer' s research note ...
- Barry Ritholtz speaks of Moral Hazard
As I pointed out yesterday, this is raising the question of responsible policies ... and the major question of inflation/deflation! Cassandra, that does Tokyo, wins the responsible policy lottery, and further on covers the issue of inflation/deflation already in two parts ... here's the Part I and here's the Part II.
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