George Washington’s Blog
Friday, Oct 3, 2008
Another key insider has said that the Paulson plan might make things worse. Specifically, the former head of the Fed’s open market operation – the key Fed agency which has been loaning hundreds of billions of dollars to Wall Street companies and banks – was quoted in Bloomberg:
“Every time you tinker with this delicate system even small changes can create big ripples,” said Dino Kos, former head of the New York Fed’s open-market operations . . . “This is the impossible situation they are in. The risks are that the government’s $700 billion purchase of assets disturbs markets even more.”
In other words, it might do more harm than good.
Mr. Kos joins a long list of other leading experts who question the bailout, including:
This article was posted: Friday, October 3, 2008 at 3:54 am