Douglas M. Hodge
The ultimate solution, it seems to me, must not emanate from the bowels of the Fed headquarters on Constitution Avenue, but from the West Wing of 1600 Pennsylvania Avenue. Fiscal, not monetary policy should be the preferred remedy, one scaling Rooseveltian proportions emblematic of the RFC, or perhaps to be more current, the RTC in the early 1990’s when the government absorbed the bad debts of the failing saving and loan industry. Why is it possible to rescue corrupt S&L buccaneers in the early 1990’s and provide guidance to the levered Wall Street investment bankers in 1998 LTCM crisis, yet throw 2,000,000 homeowners to the wolves in 2007.—Investment Outlook: Where’s Waldo? Where’s W?, August 2007
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