Thursday, September 25, 2008

On second thought ...

Maybe I'm wrong:

The director of the Congressional Budget Office said yesterday that the proposed Wall Street bailout could actually worsen the current financial crisis.

During testimony before the House Budget Committee, Peter R. Orszag -- Congress's top bookkeeper -- said the bailout could expose the way companies are stowing toxic assets on their books, leading to greater problems.

"Ironically, the intervention could even trigger additional failures of large institutions, because some institutions may be carrying troubled assets on their books at inflated values," Orszag said in his testimony. "Establishing clearer prices might reveal those institutions to be insolvent."


Maybe we should get all this crap out into the light of day? Let all the shit float to the surface so we can skim it off.

Great thanks to Oliver Willis for the link.

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