(And It's a Good Thing)
This morning, Secretary Paulson edged closer to direct investment in the troubled banks. This semi-nationalization idea just got introduced over in the UK, and seems to have worked elsewhere (e.g., Sweden) as a cure for banking crises.
Brad DeLong has the score on the Paulson Plan (buy distressed assets at market value--OK), the Elmendorf-Brown plan (recap/semi-nationalization--better) and the McCain plan (buy bad stuff at face value--weird and counterproductive).
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