John Cochrane on Why the Bailout Plan Would Be a Disaster posted at Freakonomics
John Cochrane has written an insightful piece on the bailout. In short, he believes that the Treasury plan needs to be shot, have a stake driven through its heart, and be buried.
This is one of the most clearheaded articles on the subject I’ve read. I would like to see some of the plan’s defenders respond. It could be that congress did the right thing by turning it down, but for the wrong reason.
Yes, we need to do something. But “doing something” that will not work — with potentially dire consequences — is not the right course, especially when sensible and well-understood options remain.