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Not pretty, but then again... what were you expecting?

Posted on October 03, 2008

Alex Tabarrok at Marginal Revolution writes:The consensus among economists is now clear, the best strategy fordealing with the financial crisis is to recapitalize the banks thatneed recapitalization. Paul Krugman, John Cochrane, Luigi Zingales, Douglas Diamond, Raghuram Rajanand many others all advocate some form of recapitalization as do TylerCowen and myself. Krugman would prefer a recapitalization in the formof nationalization. In my view, there is still plenty of private moneyto buy banks at the right price and my preferred model is the FDICleading a speed bankruptcy procedure, as wa...

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