No Substitute for the 'P'-Word in Financial Rescue
AbstractThree months and three-hundred billion dollars of bank rescue efforts have gotten bogged down in a widespread and irrational fear among policymakers: the fear of trying to put a price on banks’ troubled assets. So profound is this fear that the Bush Treasury opted instead for the “suitcase approach,” where large sums of cash were delivered to banks (solvent and insolvent alike) with few strings attached. The government needs to restore the banking sector, while protecting the interests of taxpayers. There is no substitute for the P-word.
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Bibliographic InfoPaper provided by University of Maryland, Department of Economics - Peter Cramton in its series Papers of Peter Cramton with number 09fop.
Length: 3 pages
Date of creation: 2009
Date of revision: 2009
Publication status: Published in The Economists' Voice, 6:2, www.bepress.com/ev/vol6/iss2/art2, February 2009
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Postal: Economics Department, University of Maryland, College Park, MD 20742-7211
Phone: (202) 318-0520
Fax: (202) 318-0520
Web page: http://www.cramton.umd.edu
Auctions; financial auctions; financial crisis;
Other versions of this item:
- Ausubel Lawrence M & Cramton Peter, 2009. "No Substitute for the "P" Word in Financial Rescue," The Economists' Voice, De Gruyter, De Gruyter, vol. 6(2), pages 1-3, February.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- G01 - Financial Economics - - General - - - Financial Crises
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
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- Vasiliki Skreta & Thomas Philippon, 2010.
"Optimal Interventions in Markets with Adverse Selection,"
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- Thomas Philippon & Vasiliki Skreta, 2011. "Optimal Interventions in Markets with Adverse Selection," Working Papers, New York University, Leonard N. Stern School of Business, Department of Economics 11-11, New York University, Leonard N. Stern School of Business, Department of Economics.
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