On Oct 6, 2008, at 12:27 AM, Gar Lipow wrote:
> It will really be interesting to note over the next few days whether
> this bailout gives major institutions the confidence to start short
> term lending again.
This is not the best-designed bailout in the history of bailouts - though a piece in today's FT says the language is broad enough to give the Treasury broad discretion, and it is likely to use that discretion to pursue the better strategy of direct recapitalizations. But in any case, they take years. Judging it on the basis of the first three hours of stock trading is nutty.
Doug