28 Sep 2008

Economist Robert Murphy Endorses the Bailout (!!)

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From this Boston Herald column:

Not even economists and financial experts could agree on the plan’s wisdom and probability of success, if the $700 billion package is approved.

Some say the bailout could easily cost more than $1 trillion.

Peter Cohan, a venture capitalist and president of Peter Cohan & Associates in Marlboro, said Paulson’s proposal is a “terrible idea” because it calls for buying up bad mortgage assets without really helping companies recover.

But Robert Murphy, an economist…said buying up bad assets of Wall Street firms will help firms get out from under the toxic securities that have already claimed Bear Stearns, Lehman Brothers, Merrill Lynch and American International Group.

In the words of Austin Powers, “Really baby, that’s not my quote.”

(Note they are referring to a different Murphy; they aren’t misquoting me.)

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