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The Wikipedia article has a list of proposed alternatives. https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008#Alternative_proposals htt
by sampo 8y ago
The Wikipedia article has a list of proposed alternatives.
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008#Alternative_proposals https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati...
Especially I'd like to point out the one proposed by Paul Krugman. Instead of injecting money into the banks, the government invests the money in the banks, diluting the previous shares. After the crisis, the government starts selling their shares, getting at least part of the money back.
https://en.wikipedia.org/wiki/Swedish_banking_rescue https://en.wikipedia.org/wiki/Swedish_banking_rescue
- pas 8y ago> After the crisis, the government starts selling their shares, getting at least part of the money back. Wasn't TARP repaid?
- m_st 8y agoTo my (amateur) understanding, that's what they did in Switzerland and it turned out pretty well for the national bank. Personally I also made some smallish stock investments during that time. I only regret that I didn't invest just a little more... the profit is/was huge.
- chimeracoder 8y ago> Especially I'd like to point out the one proposed by Paul Krugman. Instead of injecting money into the banks, the government invests the money in the banks, diluting the previous shares. After the crisis, the government starts selling their shares, getting at least part of the money back. You are basically describing TARP, which is what happened (and netted over $11 billion in returns).