Too many developments to report on regarding the financial crisis. As I try to catch up here are some good links.
Joe Nocera has a good column on why Paulson's plan may be a failed Hail Mary Pass.
Luis Zingales has a very good note on the problems with the new RTC plan.
Both of the articles point out how difficult it is to value the toxic assets that the new agency will buy. This leads to a very good chance of a huge taxpayer transfer to the financial institutions. Or it will not solve much.
Then there is the ban on short-selling by the SEC. This is a completely idiotic policy and I will post on this. See this article, for example. Banning short-selling to stop a financial crisis is like banning reporters when a war is going bad. Attack the messenger. The short-sellers were not responsible for the toxic debt. But those responsible prefer to blame the short-sellers to deflect attention on themselves.
19 minutes ago