Skip to: Content
Skip to: Site Navigation
Skip to: Search
MONDAY, NOVEMBER 23, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


 OPINION 
0

Bailout Won't Bail Out Bernanke

Nation needs explanation of how it will help

Share

(Newser) – The economic bailout plan does nothing to address the "collapse in confidence" hammering the financial system, Christopher Carroll writes for the Financial Times. Using the example of the "Bank of Rome" in August, 79 AD, the Johns Hopkins economist argues that the plan makes as much sense as expecting that the "citizens of Pompeii will repay their mortgage loans" and calls on Ben Bernanke to step up.

Carroll points out that "buying the worthless rights to the Vesuvian mortgages for $0 would do nothing to restore the Bank of Rome to health." After blasting away at Hank Paulson (Nero, in this scenario), he points out that "some important voices have been keeping mum because of our profession’s well-justified confidence in" Bernanke, and expresses hope that the Fed chairman will pacify his fellow economists sooner rather than later.

President Bush shakes hands with Treasury Secretary Henry Paulson after the House passed the $700 billion financial bailout bill Friday, Oct. 3, 2008.
President Bush shakes hands with Treasury Secretary Henry Paulson after the House passed the $700 billion financial bailout bill Friday, Oct. 3, 2008.   (AP Photo/Charles Dharapak)
Federal Reserve Chairman Ben Bernanke, right, accompanied by Treasury Secretary Henry Paulson, testifies on Capitol Hill on Sept. 24, 2008.
Federal Reserve Chairman Ben Bernanke, right, accompanied by Treasury Secretary Henry Paulson, testifies on Capitol Hill on Sept. 24, 2008.   (AP Photo/Manuel Balce Ceneta, file)
Fed chairman Ben Bernanke, right, and Treasury Secretary Henry Paulson testify before the House Financial Services Committee Wednesday, Sept. 24, 2008.
Fed chairman Ben Bernanke, right, and Treasury Secretary Henry Paulson testify before the House Financial Services Committee Wednesday, Sept. 24, 2008.   (AP Photo/Manuel Balce Ceneta)
Fed chairman Ben Bernanke, right, and Treasury Secretary Henry Paulson testify before the House Financial Services Committee, Wednesday, Sept. 24, 2008.
Fed chairman Ben Bernanke, right, and Treasury Secretary Henry Paulson testify before the House Financial Services Committee, Wednesday, Sept. 24, 2008.   (AP Photo/Manuel Balce Ceneta)
« Prev« Prev | Next »Next » Slideshow

Perhaps, we economists are missing something. ... My sense is that some important voices have been keeping mum because of our profession’s well-justified confidence in Federal Reserve chairman Ben Bernanke. - Christopher Carroll

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

278 Stories


 Fed Restricts Overdraft Fees 

Customers must opt in for coverage of ATM, debit transactions

Nov 12, 09 1:06 PM CST
(Newser) - Starting in July, banks will have to get consumers' explicit consent before authorizing an overdraft—and the accompanying fee—on debit and ATM card transactions. Since the advent of the financial crisis, overdraft fees have become the biggest source of consumer fee income for banks. Congress is also considering making... More »

MORE ABOUT:
Ben Bernanke • Federal Reserve • debit card • ATM • financial crisis • overdraft fee

Bernanke: US Must Save More, Asia Spend More

Fed chief warns global imbalances could trigger new meltdown

Oct 20, 09 8:46 AM CDT
(Newser) - The world economy is headed back down the drain if Asians don't start spending more and Americans don't start saving more, Ben Bernanke said at a conference yesterday. The Fed chief warned that unequal trade patterns were partly to blame for the financial crisis and that they are re-emerging as... More »

MORE ABOUT:
China • Ben Bernanke • Federal Reserve • US-China trade deficit • trade deficit • US economy • Chinese economy • trade gap • financial crisis

GLOSSIES

8 Days That Shook the Financial World

James Stewart on the week that Lehman failed, and meltdown loomed

Sep 16, 09 9:35 PM CDT
(Newser) - James Stewart’s reconstruction of the 8 nail-biting days, a year ago, in which the federal government stepped in to stop the collapse of the world financial system—published in the New Yorker this week, just as Fed chief Ben Bernanke was declaring the recession officially over—makes riveting, tense... More »

MORE ABOUT:
Ben Bernanke • New Yorker magazine • Goldman Sachs • Henry Paulson • Morgan Stanley • Bear Stearns • Merrill Lynch • Lehman Brothers • AIG • financial crisis • Timothy Geithner • James Stewart

278 Stories


Paulson's new role
Christian Science Monitor


Opinion  •  Business  •  Politics 
TwitterFollow @NewserOpinion on Twitter

 
Ben Bernanke • Federal Reserve • Henry Paulson • US economy • Treasury Department • Pompeii • bailout • Treasury secretary • financial crisis

from our news partners